Acupuncture Insurance Scam Costs Doctor $7M, Feds Say

BROOKLYN, NY — A doctor with a dozen offices across New York City and New Jersey will need to pay up more than $7 million after investigators uncovered a lengthy insurance scam, prosecutors said.

Federal prosecutors announced Wednesday that they had reached a $7.4 million settlement with Dr. Amit Poonia and six of his surgery centers and medical offices, which operate under the company "Interventional Pain Management Center," according to officials.

The settlement comes several years after investigators first discovered Poonia had been claiming acupuncture procedures were "surgical implantations" in order to get more insurance money from the government, according to court documents.

“This settlement holds the defendants accountable for mischaracterizing acupuncture as a surgical procedure in order to dishonestly obtain millions of dollars from Medicare and the Federal Employees Health Benefit Program,” said United States Attorney Breon Peace.

Through his company, Poonia would have staff characterize acupuncture treatments known as "P-Stim" or "NeuroStim/NSS" as a "surgical implantation of a neurostimulator," which would mean a reimbursement from the government, according to prosecutors.

Acupuncture treatments, which P-Stim and NSS are both considered under the law, are ineligible for reimbursement, according to prosecutors.

The scam went on for at least five years between 2012 and 2017, according to prosecutors.

Investigators first filed a complaint against Poonia in 2018.

That complaint included claims about a total of 12 offices connected to Poonia's company, including one in Staten Island and another in Park Slope, documents show.

The original complaint also included several other allegations, including that Poonia was ordering excessive urine tests, dangerous spinal procedures and putting patients under unnecessary anesthesia to get more money from the government, according to court documents.

Wednesday's settlement includes only six of Poonia's offices, all in New Jersey, prosecutors said.

Under the settlement, Poonia's company will submit claims to a review organization that will ensure he's complying with Medicare requirements. His staff will also be required to undergo training about healthcare fraud laws, prosecutors said.

Correction: This story previously stated the settlement included New York City medical offices given a since-corrected press release from the The Eastern District of New York, which updated the release to clarify only six New Jersey locations are in the settlement.