Houston Physician Pays $2M to Resolve Medicare neurostimulator fraud settlement
A Houston-based pain management doctor has agreed to a $2 million settlement over allegations of Medicare neurostimulator fraud. The case highlights deceptive billing practices involving non-surgical procedures misrepresented as complex spinal surgeries, which are central to Medicare neurostimulator fraud issues.
🩺 Summary of Allegations:
- Physician: Dr. Ajay Aggarwal, anesthesiologist and pain specialist
- Practices: Bellaire, Lake Jackson, Van Vleck
- Entities Involved: Ajay Aggarwal (sole proprietorship), PRWCSWTX LLC
- Timeframe: November 2021 – March 2023
- Claim Type: Surgical implantation of neurostimulator electrodes
- Reality: Electro-acupuncture devices taped behind the ear, no incisions, performed in clinic, which is a form of neurostimulator Medicare fraud.
💬 Federal Response:
“A doctor who uses simple medical devices on his patients, yet bills Medicare for a sophisticated spinal surgery, is bilking the American taxpayer.” — U.S. Attorney Nicholas J. Ganjei
Multiple federal agencies, including USPS-OIG, DOL-OIG, and DHHS-OIG, collaborated on the investigation. The settlement reinforces the government’s commitment to protecting taxpayer-funded healthcare programs. Such efforts are crucial in combating fraud related to neurostimulators in Medicare. DOJ press release
Procedure Comparison: What Was Billed vs. What Was Done
| Aspect | Billed Procedure (Neurostimulator Surgery) | Actual Procedure (Electro-Acupuncture) |
|---|---|---|
| Type | Invasive spinal surgery | Non-invasive ear stimulation |
| Location | Operating room | Clinic room |
| Equipment | Surgical neurostimulator electrodes | Monofilament wire + adhesive device |
| Reimbursement | Thousands per procedure | Minimal cost |
Timeline of Alleged Fraud
- Nov 16, 2021: Start of billing period
- Mar 28, 2023: End of billing period
- Aug 11, 2025: Settlement announced

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