U.S. DEPARTMENT OF JUSTICE A1 FINANCIAL CRIME HIGH RISK Published 16 Oct 2026 at 12:00 UTC, affecting US

DOJ: Connecticut Physician and His Practices Pay More Than $860K to Settle False Claims Act Allegations

DOJ reports Steven Murphy, M.D. and his practices will pay $866,539 to settle COVID-19 and health care fraud allegations.

Read the original notice ↗ All US items

In short

  • Murphy and his practices are excluded from all federal health care programs for three years.
  • False claims were submitted to HRSA, Medicaid, and Medicare for uninsured patients and unperformed blood tests.

What happened

Steven Murphy, M.D. and his practices, Murphy Medical Associates, LLC and Diagnostic and Medical Specialists of Greenwich, LLC, agreed to pay $866,539 to resolve allegations of submitting false claims related to COVID-19 uninsured patient reimbursements and blood testing fraud. The settlement covers conduct from September 2019 through April 2022.

Murphy and his practices are excluded from all federal health care programs for three years. The government alleges they submitted claims for patients who were actually insured and billed Medicare and Medicaid for blood tests that were never performed due to missing reagents.

FROM THE NOTICE
Murphy and his practices had information, including copies of insurance cards and other documents, in their files indicating that certain patients for which they made attestations and submitted claims for reimbursement to the Uninsured Program were, in fact, enrolled in government or private health insurance programs.
U.S. Department of Justice, justice.gov

In numbers

  • $866,539 settlement payment for False Claims Act allegations

Named in this item

3 entities
STATUS NAME ISO PROGRAM IDENTIFIER
Steven Murphy
Person, accused
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US False Claims Act —
Murphy Medical Associates, LLC
Organization, accused
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US False Claims Act —
Diagnostic and Medical Specialists of Greenwich, LLC
Organization, accused
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US False Claims Act —

What compliance teams should check

  • Review claims submitted to the HRSA Uninsured Program for patients labeled as 'Covid19 HRSA Uninsured' in internal records.
  • Audit blood testing panels billed to Medicare and Medicaid for reagent purchase records and test completion.
  • Verify exclusion status of Murphy Medical Associates, LLC and Diagnostic and Medical Specialists of Greenwich, LLC from federal health care programs.

Why it matters

This case highlights the importance of verifying patient insurance status and ensuring all billed tests are actually performed. False claims to federal programs, such as HRSA, Medicaid, and Medicare, can result in significant financial penalties and exclusion from federal health care programs. Compliance officers must closely monitor attestations, billing practices, and reagent inventory to prevent similar violations and protect their organizations from regulatory action and reputational harm.

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