Home Health Agencies, Laboratory, and Physician Indicted for MassHealth Fraud and Kickback Schemes Involving Over $7.8 Million in False Claims
The Massachusetts Attorney General’s Office (AGO) has announced the indictment of several MassHealth providers and business owners in connection with an alleged multi-million-dollar fraud and kickback scheme. The indictment, returned by the Suffolk County Statewide Grand Jury on March 12, 2025, accuses these individuals and companies of illegally profiting from fraudulent claims involving urine drug tests and home health services.
The Alleged Scheme
The AGO alleges that the indicted parties orchestrated a complex fraud operation that resulted in over $7.8 million in false claims to MassHealth. These claims allegedly involved medically unnecessary, unauthorized, or entirely fabricated services.
According to the AGO, certain clinical laboratories and home health agencies colluded to enroll patients—many from sober homes—into frequent urine drug testing and home health services that were neither medically necessary nor properly authorized. To make these claims appear legitimate, a Falmouth-based physician, Dr. Maria Batilo, allegedly accepted payments in exchange for signing off on the services, despite never actually providing care to the patients.
Additionally, the AGO contends that some of the billed home health services never took place at all, with some claims even involving services for hospitalized or deceased patients.
Who Has Been Indicted?
On March 10, 2025, the following individuals and businesses were indicted:
Clinical Laboratories & Owners
Central Lab Partners, LLC (CLP) – Worcester-based clinical laboratory
Cynthia Norton – Owner of CLP, West Boylston
Optimum Labs, Inc. (Optimum) – New Bedford-based clinical laboratory
William Owens – Owner of Optimum, New Bedford
Home Health Agencies & Owners
Patient Care Solutions, LLC (PCS) – Danvers-based home health agency
Colette Massamba & Maxwell Dede – Owners of PCS, Lynn
Physician
Dr. Maria Batilo – Falmouth-based physician
The Charges
The indicted parties face a variety of charges, including:
Medicaid False Claims
Larceny Over $1,200
Medicaid Kickbacks
Money Laundering (for Dede and Massamba)
Additionally, Dr. Batilo faces a separate charge for allegedly illegally charging MassHealth patients out-of-pocket for Suboxone, a medication used for opioid addiction treatment. Under Massachusetts law, MassHealth providers are strictly prohibited from charging members directly for covered services.
A Closer Look at the Allegations
Fraudulent Billing & Kickbacks
The AGO claims that CLP, PCS, and Dr. Batilo engaged in a kickback scheme that involved referring MassHealth patients for unnecessary urine drug tests and home health services. These services were reportedly designed to meet sober home requirements rather than genuine medical needs, violating MassHealth guidelines.
To make the scheme appear legitimate, PCS allegedly paid Dr. Batilo, who, in turn, approved home health services and drug test orders without seeing the patients.
Nonexistent & Medically Unnecessary Services
The investigation uncovered that many of the services billed to MassHealth never actually occurred. Some claims even included services for deceased or hospitalized patients, raising further concerns about fraudulent practices.
Additional Kickback Arrangement Between Labs
The AGO also alleges that CLP and Optimum Labs entered into their own illegal kickback agreement, where Optimum referred drug tests to CLP in exchange for a portion of related insurance reimbursements.
What Happens Next?
These are serious allegations that, if proven, could lead to significant legal consequences for those involved. However, all defendants are presumed innocent until proven guilty in a court of law.
The AGO continues to investigate and prosecute healthcare fraud aggressively, emphasizing the importance of protecting taxpayer dollars and ensuring that MassHealth serves those who truly need it.
Final Thoughts
This case serves as a stark reminder of the consequences of healthcare fraud and the AGO’s commitment to holding bad actors accountable. Fraudulent billing and kickback schemes not only waste taxpayer money but also undermine trust in the healthcare system.
As the legal proceedings unfold, this case will likely shed light on further details surrounding the alleged scheme—and serve as a warning to those who attempt to exploit public healthcare programs.
All the preceding charges are allegations, and the defendants are presumed innocent until proven guilty.
