Austin, Texas, December 3, 2025
Austin Emergency Center has agreed to a settlement of $429,231 over allegations of overbilling for COVID-19 testing under the False Claims Act. The settlement resolves claims that the facility charged inflated amounts to the Federal Employees Health Benefit Program, exceeding rates charged to cash-paying patients, and improperly up-coded services during testing. No admission of liability was made by the center. This case underlines heightened scrutiny of healthcare billing practices during the pandemic era.
Austin Emergency Center Agrees to $429,231 Settlement Over COVID-19 Testing Overbilling
Austin, Texas – Austin Emergency Center and its affiliated companies have agreed to pay $429,231 to settle allegations of overbilling for COVID-19 tests under the False Claims Act. The settlement addresses claims that the medical facilities submitted inflated charges to the Federal Employees Health Benefit Program (FEHBP) between June 18, 2020, and April 2, 2021. Specifically, the center charged the FEHBP more than it charged cash-paying patients for certain COVID-19 tests and improperly up-coded evaluation and management services during drive-through COVID-19 screenings. The settlement resolves these allegations without an admission of liability by Austin Emergency Center.
Details of the Allegations
The U.S. Department of Justice alleged that Austin Emergency Center submitted inflated claims for reimbursement to the FEHBP. The center charged the FEHBP more than it charged cash-paying patients for certain COVID-19 tests during the period from June 18, 2020, through April 2, 2021. Additionally, the center up-coded evaluation and management services for drive-through COVID-19 screenings during the period from April 13, 2020, through April 2, 2021.
Background on the Settlement
The settlement was reached without an admission of liability by Austin Emergency Center. The company operates multiple emergency medical facilities in the Austin area, including locations in Riverside, Arboretum, South Lamar, Anderson Mill, Mueller, and Pflugerville.
Statements from Authorities
U.S. Attorney Justin R. Simmons for the Western District of Texas emphasized the importance of holding healthcare providers accountable for unlawful practices, stating that the Department of Justice is actively seeking to recover stolen pandemic-era funds on behalf of the American people.
Implications for Healthcare Providers
This case highlights the ongoing scrutiny of healthcare providers’ billing practices during the COVID-19 pandemic. The Department of Justice continues to investigate and address instances of overbilling and fraudulent claims to ensure the integrity of healthcare programs and protect public funds.
Frequently Asked Questions (FAQ)
What is the settlement amount agreed upon by Austin Emergency Center?
Austin Emergency Center and its affiliated companies have agreed to pay $429,231 to settle allegations of overbilling for COVID-19 tests under the False Claims Act.
What were the specific allegations against Austin Emergency Center?
The U.S. Department of Justice alleged that Austin Emergency Center charged the Federal Employees Health Benefit Program (FEHBP) more than it charged cash-paying patients for certain COVID-19 tests and improperly up-coded evaluation and management services during drive-through COVID-19 screenings between June 18, 2020, and April 2, 2021.
Did Austin Emergency Center admit to the allegations?
No, the settlement was reached without an admission of liability by Austin Emergency Center.
What are the locations of Austin Emergency Center’s facilities?
Austin Emergency Center operates multiple emergency medical facilities in the Austin area, including locations in Riverside, Arboretum, South Lamar, Anderson Mill, Mueller, and Pflugerville.
What is the Department of Justice’s stance on healthcare providers’ billing practices during the COVID-19 pandemic?
The Department of Justice continues to investigate and address instances of overbilling and fraudulent claims to ensure the integrity of healthcare programs and protect public funds.
Key Features of the Settlement
| Feature | Details |
|---|---|
| Settlement Amount | $429,231 |
| Allegations | Overbilling the Federal Employees Health Benefit Program for COVID-19 tests and up-coding evaluation and management services during drive-through screenings between June 18, 2020, and April 2, 2021. |
| Admission of Liability | No admission of liability by Austin Emergency Center. |
| Facility Locations | Riverside, Arboretum, South Lamar, Anderson Mill, Mueller, and Pflugerville. |
| Department of Justice’s Stance | Actively investigating and addressing overbilling and fraudulent claims to protect public funds. |
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