Business Law:
Article 4

URL: http://www.cleveland.com/court-justice/index.ssf/2015/08/westlake_cardiologist_performe.html

 

Article: Cardiologist Performed Unnecessary Tests Through Fraud For Greed

 

Author: Eric Heisig

 

Date: 31/08/2015

 

Source: Cleveland (The Plain Dealer)

 

Brief Summary:

 

An American cardiologist was charged for performing unnecessary heart tests and invasive procedures based on his own personal greed Persaud, 56, has been practicing medicine for 23 years, but is now facing charges for health care fraud, money laundering as well as 14 counts of making false statements on medical records.

 

Based on the FBI's investigation that began in 2012, a review from consultants hired by all three hospitals where Persaud was working in, has confirmed that he has performed more than 100 unnecessary and improper tests and procedures between 2006 and 2012. He is said to have overbilled Medicare and other insurers by $7.2 million. He had also tricked victims into believing they had conditions which they did not have in order to make them undergo several expensive tests, and then charges them extra in order to fill his own pockets with money through insurance claims.

 

Topic: Void Contracts & Termination & Remedies

 

Opinion:

 

Based on this article, we believe that Persaud is definitely liable for his charges of health care fraud, money laundering, making false claims on medical records, and conducting unnecessary and improper tests for his own personal gains.

 

When patients go to him for medical reasons, there is an oral contract that is formed between Persaud and the patients because they are paying him for his services and medical advice. Hence, Persaud has a duty as a professional to be honest and only conduct medical procedures which are necessary. However, in this case, Persaud has been proven by multiple professional consultants to have performed more than 100 unnecessary and improper tests on his patients. He has also falsely recorded heart blockages of his patients to justify his expensive tests.

 

Thus, this proves that Persaud has breached his contract with his patients by falsely recording medical data and giving them unnecessary treatments and/or tests. This means that his patients have the right to terminate their contract with Persaud and sue for damages. His patients could also sue for emotional stress due to false medical results from Persaud, insisting that they have heart blockages. Besides that, they could  also sue for the unnecessary medical expenses incurred by them due to his unreasonable medical advice.