Saturday, September 1, 2007

Conviction in Health Fraud Case Involving Compounded Aerosols

A DOJ Press Release reports that following a seven day trial in Miami, Florida, "[t]he owner and operator of a Florida durable medical equipment company and an assisted living facility has been convicted by a federal jury."  She was convicted of "conspiracy to defraud the U.S. government, to submit false claims to Medicare, and to receive kickbacks; conspiracy to commit health care fraud; and three counts of receiving kickbacks in exchange for referring patients to a co-conspirator pharmacy."  Sentencing is set for November 9th.

The case involved “compounded” aerosols. The press release notes that "[c]ompounding is the process of a pharmacist making medication as opposed to a pharmaceutical manufacturer."  The press release states that:

"In 2006, the Medicare program paid for over $155 million worth of aerosol medications in Miami-Dade County alone. These drugs amassed the single most common item billed to Medicare Part B and accounted for over 32 percent of all claims filed with the Durable Medical Equipment Regional Carrier (DMERC) in Miami-Dade County. From 2005 to 2006, claims for aerosol medications rose approximately 115 percent. According to Medicare data, Miami-Dade County alone accounted for more paid DME claims than every state in the country except California, Texas, New York, Michigan, and Ohio.

"Centers for Medicare and Medicaid Services recently announced that it will no longer pay for compounded aerosol, as it has concluded that such drugs are medically unnecessary."

(esp)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2007/09/conviction-in-h.html

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Comments

Medical equipment and supplies are one of the most common areas of Medicare fraud. But, I wonder why aerosol sprays are so popular with the con men.

Hmmm! I write on all kinds of con man activity, constantly, but can't quite figure this one out.

Posted by: Jack Payne | Sep 2, 2007 2:49:28 PM

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