San Francisco Company Agrees to Pay Over Three Million Dollars to Resolve Allegations That They Submitted False Claims for Healthcare Payments

SAN FRANCISCO - San Francisco-based Circle Medical Care of California, Circle Medical Technologies, Inc., and their Chief Medical Officer and medical director Dr. Nicole Tsang, D.O., have agreed to pay a total of $3,325,000 to the United States and the State of California to settle allegations that they knowingly submitted claims for payments to federal healthcare programs and California commercial insurers for services by providers who did not actually provide or supervise those services, in violation of the federal False Claims Act and corresponding state statute.

Circle operates an online telehealth platform through which it offers mental health treatment and primary care medical services through contract providers, including nurse practitioners and physician assistants located throughout the country. Circle submits claims for payment to federally funded health programs, including Medicare, Medicaid, and TRICARE, and to California commercial insurers. The United States and California allege that Circle submitted claims for payment to these programs and insurers for services, and received reimbursement, between January 1, 2018, and May 31, 2025, despite knowingly identifying the name and NPI (National Provider Identifier) number of rendering providers who did not actually provide or supervise the services rendered, and failed properly to supervise the nurse practitioners and physician assistants who rendered medical services to its patients during this period.

Under the settlement agreement, Circle will pay $475,000 to the United States and $2,850,000 to California.

United States Attorney Craig H. Missakian, Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG), and Assistant Inspector General and Health Care Fraud Division Director Jennifer K. Dietz of the Defense Health Agency Office of Inspector General (DHA-OIG) made the announcement.

"The integrity of our federal health care system depends on the accuracy of the information submitted by providers," said United States Attorney Craig H. Missakian. "This resolution sends a clear message that we will seek to hold accountable anyone who compromises that integrity. Our priority is to protect both the patients who rely on these vital services and the tax dollars that fund them."

"Submitting claims under another provider's identity undermines the integrity of our federal health care programs and puts patients at risk," said HHS-OIG Special Agent in Charge Breeden. "This resolution reflects our commitment to holding entities accountable when they knowingly sidestep required Medicare safeguards and misrepresent who is actually delivering care."

The settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Jason Vellen. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States and State of California ex rel. Jason Vellen v. Circle Medical Care of California, Circle Medical Technologies, Inc., Dr. Nicole Tsang, D.O, and George Favvas, No. 3:24-cv-02024-TSH (N.D. Cal.). In connection with the settlement, Mr. Vellen will receive $80,750 from the United States and $997,500 from California.

Assistant U.S. Attorney Savith Iyengar handled this matter. The resolution resulted from a coordinated effort among the U.S. Attorney's Office for the Northern District of California, the California Department of Insurance, and the San Francisco District Attorney's Office.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.