US DOJ Charges Nearly 200 Doctors, Nurses in $2.7 Billion Healthcare Fraud Bust

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US DOJ Charges Nearly 200 Doctors, Nurses in $2.7 Billion Healthcare Fraud Bust
Several hundred doctors, nurses and medical professionals come together to protest against police brutality and the death of George Floyd on June 5, 2020 in St Louis, Missouri. Michael B. Thomas/Getty Images

The United States Department of Justice has announced that a significant number of individuals, close to 200, are facing charges as part of a comprehensive effort to combat healthcare fraud.These schemes involved making false claims that amounted to a staggering $2.7 billion.

Doctors, Nurses Charged in $900M Fraud Targeting Vulnerable Patients

On Thursday (June 27), Attorney General Merrick Garland revealed charges against a number of individuals in the US, including doctors and nurse practitioners, who are alleged to have engaged in various fraudulent activities.

One of the schemes involved a staggering $900 million scam in Arizona, specifically targeting vulnerable patients nearing the end of their lives.

In the state of Arizona case, two owners of wound care companies have been accused by prosecutors of accepting over $330 million in kickbacks.

This was allegedly part of a scheme to fraudulently bill Medicare for amniotic injury grafts, which are dressings used to aid in the healing of wounds, Al Jazeera reported.

The Justice Department revealed that there was pressure on nurse practitioners to administer unnecessary wound grafts to elderly patients, including those in hospice care.

According to court papers, there were unfortunate cases where patients passed away either on the day they received the grafts or shortly thereafter.

Prosecutors revealed that in under two years, over $900m worth of fraudulent claims were made to Medicare for grafts that were only utilized on a small number of patients.

DOJ Charges 36 in $1.1B Telemedicine Fraud, Seizes $231M in Assets

Fraud also focused on schemes related to telemedicine, with charges brought against 36 defendants who allegedly submitted over $1.1 billion in false claims to the Medicare program.

According to the New York Post, Law enforcement authorities conducted a wide-ranging operation across 32 federal districts, resulting in the seizure of over $231 million in cash, luxury vehicles, gold, and various other assets.

As part of an investigation, federal prosecutors have brought charges against seven individuals connected to the San Francisco-based telehealth startup Done Global.

The charges relate to the alleged illegal distribution of Adderall, a stimulant commonly prescribed for attention deficit hyperactivity disorder (ADHD).

There was an allegation against a nurse practitioner at the company for prescribing an unusually high number of Adderall pills without much patient interaction. Earlier this month, charges were filed against the company's founder and top doctor.

According to US officials, there are suspicions that fraudulent activities may have contributed to the widely reported shortages of Adderall in recent years.

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