JACKSON PHYSICIAN WILL PAY $300,000 FOLLOWING CLAIM

(10/10/2003)
A Jackson County doctor accused of defrauding Medicare and Medicaid has agreed to pay about $300,000 to settle a federal civil claim, according to US Attorney Kasey Warner.

Dr. William J. Casto was accused of submitting false claims to Medicare and Medicaid and receiving money which he did not earn.

The civil claim was filed by Dr. Hamid Moradi, a pediatrician who formerly worked at Jackson General Hospital.

The federal False Claims Act allows citizens to initiate actions on behalf of the federal government to recover damages and penalties for false claims submitted to federal agencies.

Earlier, Jackson General Hospital agreed to pay $765,000 to settle a similar claim filed by Moradi.

Casto was the hospital's chief of staff and a member of its board of directors at the time of the alleged incidents. Warner says Casto has since resigned from the board and relinquished his privileges to practice at the hospital.