Healthcare Fraud Lawyer Blog
As consumers of health services, we rely on medical professionals to help us protect our own health and the health of others. The vast majority of medical professionals are dedicated to providing the best care possible. Sadly, however, there are some people who abuse the public’s trust, often risking the health and welfare of others for personal gain. Today’s post will focus on pharmacies and pharmacy fraud, a category that includes pill restocking schemes. These schemes may include Medicare fraud, Medicaid fraud, and/or fraud on private insurance providers. People who become aware of such schemes, including patients, pharmacy employees, and other medical professionals, can help fight back. As a pharmacy fraud law firm, we work with concerned citizens to stop these crimes and protect the health of innocent Americans.
Restitution Order in Alleged Pill Restocking Case
Last week, according to WZZM13, a federal judge handed down an order for restitution in a case that has already let to more than a dozen arrests. WZZM reports that, according to this ruling, the drug restocking scheme cost Medicare over $64 million and cost Medicaid $18.2 million with an additional $4.7 million lost by Blue Cross Blue Shield of Michigan. The ruling decrees that the CEO and six others must collectively pay $8.8 million, 10% of the total amount lost by public and private insurers due to the fraud.
rise. In May 2010, as alleged in court filings, Tai took over operations at United Medical Diagnosis (“UMD”), a radiology clinic in Flushing, New York. From May 2010 through May 2012, Tai and his staff allegedly used the identity of the clinic’s prior owner, a radiologist, to submit more than $30 million in claims to Medicare and Medicaid. The claimed services were not actually performed and the bills were submitted without the knowledge or consent of the former UMD owner. United States Attorney Loretta Lynch explained, “The defendant sought to enrich himself and fund his lifestyle first by stealing a doctor’s identity and then using that stolen identity to steal Medicare and Medicaid funds…While the documentation provided was a sham, the money stolen was very real.”