One hundred thirty-eight people face federal charges from the Department of Justice for their part in an alleged healthcare fraud scheme that amounted to $1.4 billion in suspected losses.
The DOJ announced the charges against the 42 medical professionals and nearly 100 others on Friday. Among the charges was the use of telemedicine services fraud, which accounted for nearly $1.1 billion of the losses, CNBC reported. Authorities accused the individuals of making false and fraudulent claims.
Telemedicine is the use of communication technology to evaluate and treat patients remotely. Authorities started their investigation around telemedicine cases in 2019 and 2020. Authorities say the cases involved allegations of billing Medicare for fraudulent genetic cancer testing and telemedicine executives paying doctors and others to place unnecessary orders for durable medical equipment, diagnostic testing, and medication.
What makes matters worse, they did so without even interacting with patients or having an appointment with them.
Authorities are also investigating fraud centered around exploiting the COVID-19 pandemic, “sober homes,” and opioid distribution networks.
“We are stopping corrupt medical professionals in their tracks,” Assistant Attorney General Kenneth Polite Jr. of the Justice Department’s criminal division told reporters during a briefing about the case.
Out of the 138 people charged, 23 are doctors. The cases will be prosecuted by 31 U.S. attorneys’ offices across the country.
Polite reported that opioid-related overdoses took the lives of nearly 70,000 Americans last year. The DOJ charged 19 people with opioid-related fraud cases; 16 of those were doctors or medical professionals.
“Holding to account those responsible for health care fraud and diversion of prescription drugs is a priority for DEA,” said Anne Milgram, administrator of the Drug Enforcement Administration, in a statement.
“These fraudulent activities prey on our most vulnerable – those in pain, the substance-addicted, and even the homeless – those who are most susceptible to promises of relief, recovery, or a new start,” Milgram said.
“Not only do these schemes profit from desperation, but they often leave their victims even deeper in addiction.”
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