The DOJ just handed out its first healthcare fraud declination under a brand new corporate enforcement policy, and the case offers a real playbook for how self-disclosure can pay off for healthcare organizations facing criminal exposure.

L. Heidi Manschreck and Scott Memmott of Morgan Lewis break down how the DOJ declined criminal charges against Campus Eye Management, a New Jersey eye care practice, after the company voluntarily self-reported misconduct involving unnecessary diagnostic testing and unlawful kickbacks. The kickbacks were disguised as flat monthly consulting fees but were actually tied to a percentage of the practice’s Medicare reimbursement for diagnostic tests performed on patients the paid consultants had referred. The conduct allegedly ran for about eight years, starting well before private equity investors acquired an ownership stake through a managed services organization.

The practice founder wasn’t so lucky. He’s now facing a seven-count indictment tied to the same underlying conduct, a reminder that a company declination does not extend to the individuals responsible for the misconduct.
• DOJ credited Campus Eye’s timely self-disclosure, full cooperation, and remediation efforts, including $1 million in disgorgement to compensate victims
• Founder E. Bruce DiDonato was indicted separately on charges related to alleged healthcare fraud and illegal kickbacks
• This marks the first healthcare fraud case decided under DOJ’s new department-wide corporate enforcement policy, announced in March 2026
• DOJ’s M&A policy still offers presumptive declination for acquiring companies that self-report misconduct within six months of a deal and remediate within a year
• Investors in healthcare MSOs and provider organizations should treat fraud risk as a core part of due diligence, not an afterthought

The case cuts both ways. Self-disclosure can open the door to avoiding prosecution entirely, but that benefit comes with real costs to weigh, including reputational exposure from public declinations and potential False Claims Act liability.

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