Houston Neurologist to Pay Nearly $1 Million to Settle False Claims for Invasive Procedures

A 52-year-old Pearland man, Dr. Basem Hamid, has agreed to pay $948,359.85 to resolve allegations of submitting false claims to Medicare for the surgical implantation of neurostimulator electrodes, announced U.S. Attorney Alamdar S. Hamdani.

Dr. Hamid, a neurologist and pain medicine specialist practicing in Houston, used his entity, Basem Hamid MD PA, to conduct his medical practice. Between August 27, 2019, and October 3, 2022, Dr. Hamid billed Medicare for invasive surgical procedures to implant neurostimulator electrodes—procedures that usually require operating rooms and cost thousands of dollars. However, the government alleges that neither Dr. Hamid nor his staff performed these surgeries.

Instead, patients received electro-acupuncture treatments, which involved inserting a monofilament wire a few millimeters into the ear and taping a neurostimulator behind the ear. These treatments took place in Dr. Hamid’s clinic, not in a hospital or surgical center, and no incisions were made. Some patients reported that the device fell off on its own within days due to the adhesive losing its hold.

“Individuals suffering from chronic pain put their faith in skilled medical professionals to help them find relief and improve their quality of life,” said U.S. Attorney Hamdani. “Our federal health care system entrusts providers with the medical care of our country’s most vulnerable, and it is important for healthcare providers to give accurate information about the services they provide for reimbursement—not misrepresent those services in an attempt to increase their bottom line.”

Jason E. Meadows, Special Agent in Charge of the Department of Health and Human Services – Office of Inspector General (DHHS-OIG), added, “Dr. Hamid not only exploited Medicare for personal financial gain but also misled some of our most vulnerable citizens. DHHS-OIG and our law enforcement partners remain steadfast in our commitment to protecting the integrity of federal health care programs.”

The investigation was conducted by the U.S. Attorney’s Office and DHHS-OIG, with Assistant U.S. Attorney Laura E. Collins handling the case.

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