Heal 360 Clinics and Owner Pay $20 Million to Settle COVID‑19 Billing Fraud Claims

Heal 360 Urgent Care PLLC, Heal 360 Primary Care PLLC and their owner, Dr. Mohammed Amer Mohiuddin, have agreed to pay the U.S. government $20 million to settle allegations they submitted false claims for COVID‑19 services that were never performed.

The settlement was announced on Oct. 7, 2026 and resolves two whistleblower lawsuits filed under the False Claims Act in the Eastern and Northern Districts of Texas. The lawsuits alleged that from Jan. 1, 2021 through March 23, 2022 the clinics billed the Health Resources & Services Administration’s Uninsured Program for higher‑level evaluation and management (E/M) services that they never provided.

How the Fraud Worked

During the pandemic, Heal 360 ran walk‑up and drive‑through testing sites in Texas. Patients stayed in their cars while staff collected nasal swabs. The only service actually rendered was specimen collection, which should be billed under CPT code 99211.

According to prosecutors, the clinics instead submitted claims using higher‑level E/M codes—99203, 99204, 99213, and 99214—that pay more because they imply a detailed medical exam and decision‑making. To make the claims look legitimate, the clinics created template‑generated medical records with sections like “past medical history” and “examination,” entered by remote scribes overseas. Dr. Mohiuddin was listed as the rendering physician on most of those claims.

Legal Process and Settlement Details

The False Claims Act allows private individuals, called relators, to sue on the government’s behalf and share any recovery. The relators in these cases will receive $3.4 million of the settlement proceeds. In addition, a separate asset‑forfeiture case involving property purchased by Dr. Mohiuddin was resolved, with the proceeds also credited to the settlement.

The Justice Department’s Civil Division, the U.S. Attorney’s Offices in Texas, and the HHS Office of Inspector General worked together on the case. The settlement does not include an admission of wrongdoing, but it requires the payment of $20 million to the government.

What This Means for Patients and Providers

The settlement reinforces that federal health‑care programs will be closely monitored for fraud. Providers who bill for services not actually performed risk civil penalties, asset forfeiture, and costly settlements. Patients who received care at the testing sites were not directly harmed, but the misuse of funds could have reduced resources available for other uninsured patients.

For health‑care providers, the case underscores the importance of accurate coding and documentation. Using the correct CPT codes and ensuring that medical records reflect the services actually provided are essential to avoid false‑claims liability.

When to Seek Legal Help

If you suspect a health‑care provider has billed you or your insurance for services you never received, you may consider contacting an attorney who handles health‑care fraud or consumer protection. An attorney can help you assess whether a whistleblower claim under the False Claims Act is appropriate.

This article is general information based on U.S. Department of Justice and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 7, 2026.