Settlement allows psychiatrist to deny wrongdoing

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SPRINGFIELD — A federal court ordered an area psychiatrist $908,000 to settle allegations of false billing.

Duttala Reddy was investigated by multiple law enforcement agencies, including the Medicaid Fraud Control Unit (MFCU).

A complaint filed in September 2015 alleged Reddy submitted bills for “evaluation and management services provided at long-term care facilities” between January 2008 and February 2013 which either had not been provided or provided to the extent claimed.

It documented care for residents of nursing homes in Central Illinois, including Liberty Village, Pittsfield; Prairie Village, Rantoul; Mason City Nursing Home; Heritage Manor, Gillespie; Beverly Farm, Godfrey; and North Church Rehabilitation, Jacksonville.

According to terms of the agreement, Reddy denies the allegations, but has agreed to his exclusion from participation in Medicare, Medicaid and all other federal health care programs for ten years.

After that time period, Reddy may submit a written request for reinstatement. Reddy also agreed his termination in the Illinois Medical Assistance Program is permanent. 

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