Maryland Oncology Practice Pays $1.45 Million to Resolve False Claims Act Allegations Involving Chemotherapy Drug Billing

On July 1, 2026, the U.S. Attorney’s Office for the District of Maryland announced that Progressive Oncology & Hematology, a Maryland oncology practice, and its owner and sole provider, Dr. Mouhamad Bazzi, had agreed to pay $1.45 million to resolve allegations that they violated the False Claims Act (FCA).

According to the government, Progressive and Dr. Bazzi submitted claims to Medicare, Medicaid, and the U.S. Department of Veterans Affairs for chemotherapy drugs that the practice allegedly did not pay for. Specifically, the government alleged that the practice sought reimbursement for drugs that had been supplied by charitable organizations or through grant programs for particular patients at no cost to the defendants.

The government also alleged that Progressive and Dr. Bazzi improperly handled wastage from single-use vials. According to the government, the practice allegedly split small amounts of extra medication from single-use vials among multiple patients, but then billed as though each patient had received medication from a separate single-use vial. The government further alleged that the defendants billed federal and state healthcare programs for chemotherapy drugs that Dr. Bazzi prescribed but that were never administered to patients at the practice.

The settlement is a reminder that drug billing remains a significant area of healthcare fraud enforcement, particularly where high-cost medications are involved. Oncology practices, infusion centers, and other providers that purchase, administer, or bill for expensive drugs should ensure that their billing practices accurately reflect the source of the medication, the amount administered, any applicable wastage, and whether the provider actually incurred the cost for the drug.

The case also highlights the importance of internal controls around inventory, documentation, and billing for single-use vials. Practices should be able to reconcile drug acquisition records, patient administration records, billing records, and any wastage documentation. When those records do not align, the practice may face significant exposure under the FCA, even if the underlying services were medically necessary.

GWB represents healthcare providers in connection with government investigations and False Claims Act litigation. If you need assistance with such a matter, contact us today.