Federal complaint says Alpha Care Medical submitted $2.7 Million of false claims for unnecessary urine drug tests and tests that were never performed

By George D. Rotsch, Contributing Journalist and Editor, Delaware LIVE

LEWES — A Lewes resident who led a Delaware medical practice is part of the federal government’s national health care fraud takedown, with prosecutors accusing Alpha Care Medical LLC of submitting nearly $2.8 million in false claims to government health programs.

The U.S. Department of Justice identified Alpha Care Medical, its principal, Nihar Gala, 38, of Lewes, and laboratory director Bo Wang, 52, of Glen Mills, Pennsylvania, as the District of Delaware case in the national enforcement action.

The case is civil, not criminal. The federal government filed a False Claims Act complaint in U.S. District Court for the District of Delaware alleging Alpha Care Medical submitted or caused to be submitted false claims to Medicare, the Delaware Medical Assistance Program, TRICARE and the Federal Employees Health Benefits Program.

According to DOJ, the claims involved medically unnecessary urine drug tests and tests that were never performed. Federal officials said at least $2,799,150 in false claims were submitted and about $1,085,357 was paid.

The allegations cover conduct from July 2021 through June 2026.

Delaware’s role in national sweep

The Alpha Care Medical case was included in the 2026 National Health Care Fraud Takedown, a nationwide Justice Department enforcement action involving 455 defendants across 45 states and territories and more than $6.5 billion in alleged fraud.

Federal officials said the national sweep targeted a range of alleged schemes, including Medicare and Medicaid billing fraud, opioid distribution and prescription fraud, telemedicine fraud, lab testing fraud and corporate-level health care fraud.

The Delaware case fits into the lab-billing portion of the national effort, where federal investigators have increasingly scrutinized claims for tests that were allegedly unnecessary, duplicative, not ordered for legitimate medical reasons or never performed.

What the government alleges

In the federal complaint, prosecutors allege Alpha Care Medical operated a “sham in-house medical laboratory” that was not designed primarily to diagnose or treat patients, but to generate reimbursement.

The complaint says Alpha Care Medical, through Gala and Wang, routinely billed federal health care programs for medical tests that were unnecessary, had no value in diagnosis or treatment, or were not performed at all.

Federal prosecutors also allege Gala, as Alpha Care Medical’s sole member and president, directed the company’s conduct, including hiring, policies, billing and the submission of claims to insurers.

The complaint alleges Wang served as the company’s laboratory director and was involved in the operation of the in-house laboratory.

The government is seeking treble damages, civil penalties and repayment under the False Claims Act and related claims for payment by mistake and unjust enrichment.

Alpha Care Medical’s Delaware footprint

Alpha Care Medical is not based in Lewes. The federal complaint identifies the company as a Delaware limited liability company with its principal place of business at 1340 Middleford Road in Seaford. It also says the company had satellite offices in Dover, Harrington and Millsboro and operated a medical laboratory on John J. Williams Highway in Millsboro.

The Lewes connection is Gala, who is identified in the complaint as a Lewes resident.

Gala’s prior license history

The federal civil complaint comes several years after Gala lost his Delaware medical license and controlled-substance registration.

In 2019, Delaware regulators permanently revoked his medical license and controlled-substance registration following findings involving improper prescribing practices. The Delaware Supreme Court later affirmed the state’s decision, finding the disciplinary action was supported by substantial evidence and free from legal error.

That state licensing matter is separate from the new federal False Claims Act case. The federal complaint concerns alleged health care billing fraud tied to Alpha Care Medical’s laboratory testing claims.

What happens next

Because the Alpha Care Medical matter is a civil False Claims Act case, the defendants have not been criminally charged in this complaint. The allegations remain allegations unless proven in court or resolved through settlement or judgment.

The case is being handled by the U.S. Attorney’s Office for the District of Delaware.

To Go Box

• What happened: The U.S. Department of Justice included Alpha Care Medical LLC in Delaware’s portion of the 2026 National Health Care Fraud Takedown.
• Who is named: Alpha Care Medical LLC; Nihar Gala, 38, of Lewes; and Bo Wang, 52, of Glen Mills, Pennsylvania.
• What is alleged: Federal officials say the defendants submitted false claims for medically unnecessary urine drug tests and tests that were never performed.
• How much money is involved: DOJ says at least $2.79 million in false claims were submitted and about $1.08 million was paid.
• Where the practice was based: Alpha Care Medical’s principal place of business was listed as Seaford, with satellite offices in Dover, Harrington and Millsboro and a lab in Millsboro.
• What kind of case is it: A civil False Claims Act complaint filed in U.S. District Court for the District of Delaware.

Delaware LIVE collaborates with a network of professional journalists to cover a diverse range of stories across various fields.  Staff Writers include experienced journalists and young professionals.  If you have questions, please feel free to contact [email protected] or our publisher, George D. Rotsch, at [email protected]