Monthly Archives: October 2010

Mental health clinics targeted in Medicare fraud crackdown

Even by Miami-Dade’s reputation for Medicare fraud, the indictment was a shocker: American Therapeutic’s patients could not feed themselves or control their own bodily waste. Many lacked the mental capacity to respond to counseling; instead they simply stared at walls or watched TV. An employee complained that those patients should be ineligible for Medicare since they could not benefit from treatment.She got fired. That launched whistle-blower and criminal investigations that led to the Justice Department’s takedown Thursday of Miami-based American Therapeutic Corp., the nation’s largest chain of mental health clinics.

Miami Psychiatrist Who Wrote 96,685 Prescriptions for Psychiatric Drugs in 21 Months Prompts Calls for Federal Investigation

Based on the huge numbers of prescriptions written by a Miami psychiatrist, Sen. Charles Grassley, R-Iowa, is continuing to pressure federal officials to investigate why some doctors write stunning numbers of scripts for tax-funded Medicare and Medicaid programs. In his latest volley, a letter sent Wednesday to Kathleen Sebelius, secretary for the U.S. Department of Health and Human Services, Grassley demanded exact answers to three pointed questions about what her department is doing to address the problem. “The federal government has an obligation to figure out what’s going on here,” Grassley said in a statement e-mailed to The Miami Herald Wednesday. “The taxpayers are footing the bill, and Medicare and Medicaid are already strained to the limit. These programs can’t spare a dollar for prescription drugs that aren’t properly prescribed.

Drug Companies Hire Troubled Doctors As Experts

Drug companies say they hire the most-respected doctors in their fields for the critical task of teaching about the benefits and risks of the companies’ drugs.
But an investigation by ProPublica has uncovered hundreds of doctors receiving company payments who had been accused of professional misconduct, were disciplined by state boards or lacked credentials as researchers or specialists. To vet the industry’s handpicked speakers, ProPublica created a comprehensive database that represents the most accessible accounting yet of payments to doctors. Compiled from disclosures by seven companies, the database covers $257.8 million in payouts since 2009 for speaking, consulting and other duties. The companies include Lilly, Cephalon, AstraZeneca, GlaxoSmithKline, Johnson & Johnson, Merck and Pfizer.

Although these companies have posted payments on their websites — some as a result of legal settlements — they make it difficult to spot trends or even learn who has earned the most. ProPublica combined the data and identified the highest-paid doctors, then checked their credentials and disciplinary records.

When Big Pharma Breaks the Law—Prosecute the CEO

Since 2004, pharma has paid over $7 billion in fines and penalties, but even these figures barely dent profits. The $2.3 billion fine Pfizer paid in September 2009 for the way one of its subsidiaries marketed Bextra, the non-steroidal anti-inflammatory drug, and three other drugs, was the biggest ever paid by a corporation in the US. Yet the fine was just 14 per cent of $16.8 billion revenue from the drugs from 2001 to 2008, little more than the price of doing business.

Doctors draw payments from drug companies: Physicians say presentations they make are educational, but critics say the practice puts financial rewards ahead of patient care

Follow drug company money in Illinois, and it leads to the psychiatry department at Rush University Medical Center, a prominent headache clinic on the North Side of Chicago, a busy suburban urology practice and a psychiatric hospital accused of overmedicating kids.

In each of these settings, doctors are drawing an extra paycheck — worth tens of thousands of dollars a year or more — for speaking to other medical professionals about pharmaceutical products at company-sponsored, company-scripted events in Illinois and across the country.