Feds charge hundreds of individuals in $6 billion healthcare fraud

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, Feds charge hundreds of individuals in $6 billion healthcare fraud

Greater than 340 people had been charged with submitting $6 billion in fraudulent claims to federal healthcare applications and personal insurers for telehealth consultations and substance abuse therapy, amongst different companies, the Justice Division introduced Wednesday, describing it as the most important healthcare fraud “takedown” in historical past.

About $four.5 billion of the alleged fraud concerned telehealth, the place telehealth executives had been accused of paying docs and nurse practitioners to order pointless sturdy medical tools, genetic and diagnostic exams and ache remedy. The medical professionals both allegedly didn’t contact sufferers or had restricted cellphone conversations, and DME corporations, genetic testing labs and pharmacies would buy these orders in trade for kickbacks and bribes.

The defendants span telemedicine executives, homeowners of sturdy medical tools corporations and people related to genetic testing laboratories and pharmacies throughout 51 judicial districts. CMS revoked the federal healthcare billing privileges for 256 medical professionals.

“This marks the most important quantity of fraud ever charged by the Division of Justice in a single takedown operation,” Appearing Assistant Lawyer Basic Brian Rabbitt mentioned throughout a information convention Wednesday.


Telehealth has expanded the attain of criminals, mentioned Assistant Chief Jacob Foster, noting that associated fraud circumstances have elevated lately.

“The loss quantities are fairly staggering,” he mentioned in a Q&A with reporters after the convention. “On steadiness, they’re greater than the backyard selection healthcare fraud case.”

Greater than $845 million of the purported fraud concerned substance abuse therapy, the place physicians, affected person recruiters and homeowners and operators of sober houses would allegedly supply bribes for referrals of sufferers who would obtain pointless drug testing or remedy that wasn’t administered. Medical professionals would prescribe managed substances and different drugs to sober residence residents to entice them to remain, investigators declare.

These concerned would recruit folks from their hometowns and ship them off to so-called “sober houses,” typically offering them with medication that undercut their capability to get better, Rabbitt mentioned in the course of the information convention.

Fraud involving opioids accounted for $800 million in false claims, authorities mentioned. Affected person recruiters, beneficiaries and different stakeholders had been allegedly paid for affected person info that suppliers would use to submit fraudulent payments to federal healthcare applications and personal insurers.

In a single case, a Los Angeles hospice supplier was accused of falsely certifying Medicare beneficiaries as terminally sick and giving them sturdy painkillers and pointless companies that they might invoice to Medicare. These companies would preclude the beneficiaries from different care, in response to the indictment.

In reference to the nationwide investigation, the DOJ additionally created the Nationwide Speedy Response Strike Power as a part of the prison division’s healthcare fraud unit.

Healthcare fraud investigations have constantly netted the federal government greater than $2 billion in settlements a 12 months since 2010.

Previous to the fees introduced Wednesday, the healthcare fraud strike froce charged greater than four,200 defendants who’ve collectively billed the Medicare program for roughly $19 billion since 2007.


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