Podiatrist Charged With Overbilling for Hot/Cold Units

Thursday, February 14, 2019 | 0

A Southern California podiatrist remained in a Los Angeles County jail on Wednesday after surrendering to state Department of Insurance investigators on two fraud charges.

Schlomo Schmuel
(booking photo)

The Insurance Department on Wednesday announced that charges have been filed against Dr. Schlomo Schmuel, 53, of Sherman Oaks, for allegedly inflating bills and billing for services not rendered or medically necessary. The resulting loss to an insurer totaled more than $360,000, the department said.

Schmuel operated two businesses — Innovative Orthopedic Solutions and Diamond Orthopedic Services. He allegedly billed for a hot/cold water unit, also known as a Vital Wrap System, using two combined Healthcare Common Procedure Coding Systems codes.

The hot/cold unit, used to reduce pain and swelling after surgery, is a single component and requires only one HCPCS code. By using the two different codes, Schmuel allegedly inflated the invoices and billed for services not rendered, the department said.

The department says Schmuel also paid kickbacks to have the hot/cold water units prescribed to injured workers, despite not being medically necessary. Schmuel allegedly paid a “marketer” $100 for each unit prescribed and provided by his business.

Schmuel was booked into the Clara Shortridge Foltz Criminal Justice Center on Feb. 1. Jail records show he remained in custody on Wednesday in lieu of $290,000 bond.