Posts Tagged ‘Health and Human Services’

Miami couple faces lengthy sentence for Medicare fraud

Wednesday, September 14th, 2011

A Miami couple who owned a South Florida chain of mental health clinics face spending the rest of their lives in prison for ripping off millions from Medicare.

Miami Herald
By Jay Weaver
September 13, 2011

From left to right: American Therapeutic Corp. senior executives Lawrence Duran, Marianella Valera, Judith Negron, Margarita Acevedo and Joseph Valdes gather at a 2009 political fundraiser in Miami for then-U.S. Senate candidate Kendrick Meek. The fundraiser was sponsored by a Washington, D.C., lobbying group, the National Association for Behavorial Health, whose members include Miami-based ATC and other mental-health clinic providers. U.S. Justice Department

Lawrence Duran was a Miami healthcare executive who regularly lobbied Congress in favor of legislation to boost government subsidies for his industry: community mental health centers. He visited with U.S. Rep. Ileana Ros-Lehtinen in Washington to drum up support. He, his girlfriend and other members of his lobbying organization threw a fundraiser for another Miami congressman, Rep. Kendrick Meek, when he ran for the U.S. Senate.

But Justice Department officials paint a far more sinister portrait of Duran and his girlfriend, Marianella Valera. They say the lobbying work was all a front to help them steal more money from the taxpayer-funded Medicare program.

Now Duran and Valera, who each pleaded guilty this year to Medicare fraud charges of running the biggest mental-health racket in the nation, face the prospect of spending the rest of their lives in prison for orchestrating the $205 million scam.

If U.S. District Judge James Lawrence King sides with prosecutors at a sentencing hearing Wednesday, Duran, 49, and Valera, 40, could be imprisoned for 50 and 40 years, respectively. Those sentences would be the longest prison terms ever for Medicare fraud offenders in the country, surpassing 30 years given to a convicted Miami doctor for her role in an $11 million HIV-therapy scheme.

Duran and Valera, who once lived together in a waterfront condo, traveled overseas and owned luxury cars, co-owned American Therapeutic Corp. Until the feds shut down the Miami-based company last October, it operated a chain of seven mental-health clinics in South Florida and Orlando that duped Medicare into paying the couple’s business $87 million during the past decade.

Their lawyers, Lawrence Metsch and Arthur Tifford, contend that they should only be held liable for that loss to the federal healthcare program — not the $205 million in fraudulent claims their company submitted to Medicare.

The loss amount, depending on how the judge rules, will be a major factor in their sentencings.

In the past year, Duran and Valera were charged along with 32 other American Therapeutic employees, psychiatrists, counselors, nurses, marketers, patient recruiters and others who supplied Medicare beneficiaries in exchange for kickbacks. American Therapeutic billed Medicare for thousands of patients, including many with dementia and Alzheimer’s disease, who had no way of benefiting from the company’s costly group-therapy sessions, prosecutors said.

Duran and several of the employees also held “charting” parties, where they would falsify the medical records of beneficiaries to make it look like they needed therapy when they actually didn’t.

About a dozen of the defendants have been convicted, including Duran and Valera’s top aides, Margarita Acevedo, who ran the marketing operation to bring in patients, and Judith Negron, who was in charge of a subsidiary, MedLink, which laundered Medicare profits to pay employees and kickbacks. Another employee, Joseph Valdes, who worked under Acevedo, also pleaded guilty.

Justice Department lawyers are seeking such an extraordinarily high sentence for Duran partly because of his role as a board member of the National Association for Behavioral Health. The Washington, D.C. coalition was established to lobby Congress on behalf of clinics that purportedly provided services to the mentally ill, prosecutors said.

The group’s brochure said it was founded in 2006 with the “express purpose of fighting what would have been devastating cuts to” community mental-health centers, such as Duran’s business, American Therapeutic.

In October 2009, Duran authored a letter to the mental health operators nationwide, expressing concern about the closure of some community clinics, Medicare’s heightened scrutiny of payments and future reimbursement rates.

“We must continue to work together to protect the benefit and our patients who so desperately need our services,” Duran wrote.

The Justice Department, however, said in court papers that the organization aided Duran’s criminal conspiracy, which resulted in Medicare millions for his business, co-owned with Valera, a licensed mental-health counselor.

Little of that money has been recovered by the FBI, Health and Human Services and Internal Revenue Service.

“In actuality, NABH was an organization that provided Duran a legitimate-looking vehicle to lobby Congress to allocate more money, through Medicare, to Duran and his co-conspirators for their fraudulent claims,” Justice Department lawyer Jennifer Saulino wrote in a recent court filing.

“He directed NABH staff to disseminate to other [community mental health centers] the tricks of his trade,” Saulino wrote, noting how he instructed others “on ways in which to win appeals of Medicare denials of claims, based on ATC’s experience.”

Duran’s company also wrote four checks to NABH totaling $49,500.

Last week, another Miami member of the lobbying organization, Biscyane Milieu Health Center, was implicated in an indictment charging its owners and about 20 others with Medicare fraud.

The organization sponsored a Miami political fundraiser for Meek in October 2009, because he was an advocate for the mentally ill and supported President Barack Obama’s healthcare reform legislation.

As part of their bid to boost Duran’s prison sentence, prosecutors filed a picture of him with Valera, Negron, Acevedo and Valdes at the Meek fundraiser.

A former Meek campaign aide told The Miami Herald that the congressman did not solicit the support of Duran’s lobbying organization. Rather, a Meek supporter knew Duran and coordinated the group’s fundraiser for the congressman, who went on to win the Democratic primary for the U.S. Senate but lost in the general election last year.

“Congressman Meek met Duran for the first time at the fundraiser,” said the former aide.

Read article here:  http://www.miamiherald.com/2011/09/13/v-fullstory/2405602/miami-couple-faces-lengthy-sentence.html

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Dozens arrested in Medicare mental health fraud

Wednesday, September 7th, 2011

Miami Herald – September 7, 2011

by Jay Weaver

Federal agents have arrested dozens of suspects charged with bilking Medicare of hundreds of millions of dollars in bogus services for mental health therapy and other types of healthcare.


Click to watch video

Agents with Health and Human Services and the FBI have fanned out across three South Florida counties, arresting clinic owners, healthcare employees, patient recruiters and assisted living facility owners who allegedly supplied hundreds of patients to the mental health clinics.

The sweep comes after the indictment of Miami-based American Therapeutic Corp., which was charged along with 24 employees and others over the past year. That case alone involved $200 million in false claims submitted to the federal healthcare program for the elderly and the poor.

American Therapeutic’s top executives and others have been convicted in recent months. The latest sweep entails clinics offering group therapy sessions, home healthcare, HIV services and medical equipment.

The U.S. attorney’s office is expected to have a news conference Wednesday afternoon to provide details of the cases and defendants.

Read more: http://www.miamiherald.com/2011/09/07/2394354/dozens-arrested-in-medicare-mental.html#ixzz1XIwqbWgR

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Feds to start directly targeting drug company execs in health care fraud schemes

Saturday, June 11th, 2011

Natural News – June 10, 2011

by Ethan A. Huff

The days of drug companies simply settling out of court every time they break the law may soon be coming to an end. In a move that represents a significant shift toward punishing individuals for crimes rather than faceless corporations, federal officials say they will begin personally going after CEOs and other company executives whose companies fraudulently bilk Medicare, Medicaid, and other federal programs out of millions of dollars, or that falsely market dangerous drugs.

When a 1996 law was passed that banned drug companies convicted of felony charges from further participating in any federal health programs, Big Pharma quickly devised creative ways to get around it. As a result, drug companies for years have been able to continually break the law without much consequence by simply settling for a few million dollars, and continuing on with shady dealings that raked in a whole lot more (http://www.naturalnews.com/001867.html).

But now, company execs could face criminal charges for crimes committed by their companies, even if they claim to have had no awareness that any crimes were being committed. And drug companies will no longer be able to skirt by after breaking the law — if they cheat the government health system, they will lose any eligibility to participate in it. After all, ignorance of the law or of the illicit dealings of one’s company have never been a legitimate excuse for anyone else to evade justice — why should it be any different for drug companies?

“When you look at the history of health care enforcement, we’ve seen a number of Fortune 500 companies that have been caught not once, not twice, but sometimes three times violating the trust of the American people, submitting false claims, paying kickbacks to doctors, marketing drugs which have not been tested for safety and efficacy,” said Lewis Morris, chief counsel for the inspector general of the Health and Human Services Department (HHS), to The  Washington Post.

“To our way of thinking, the men and women in the corporate suite aren’t getting it. If writing a check for $200 million isn’t enough to have a company change its ways, then maybe we have got to have the individuals who are responsible for this held accountable. The behavior of a company starts at the top.”

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Texas Doctors Prescribe $47 Million Worth of Antipsychotic & Anti-Anixety Drugs, Primarily for Kids—One Child Psychiatrist Alone Wrote 27,000 Prescriptions For Xanax

Sunday, December 12th, 2010

The Star Telegram – Dec 12, 2010

By Darren Barbee

The boy, 20 months old, is a maelstrom of tears and self-abusive behavior. Simply holding him sets off hours of crying, banging of his head or biting himself. His mother used drugs during her pregnancy. Clinical notes recommend he receive potent antipsychotic medication, one for adults suffering bipolar disorder and schizophrenia.State medical records

With little oversight and apparent carte blanche, a relative handful of Texas physicians wrote $47 million worth of Medicaid prescriptions for powerful antipsychotic and anti-anxiety drugs over the past two years, according to a Star-Telegram analysis.

The top five doctors alone wrote $18 million worth.

Most of the drugs have gone to children and adolescents, although prescribing the drugs to children, such as a toddler, is considered “off-label” — uses not approved by the federal Food and Drug Administration.

Now the state’s Medicaid program is among others under scrutiny, after Sen. Charles Grassley, R-Iowa, began investigating the use of mental-health drugs this year. Grassley, the ranking member of the Senate Finance Committee, told federal health officials to keep a better watch on top prescribers. His conclusion: Either some physicians have specialized expertise or the number of prescriptions suggests “overutilization or even health care fraud,” according to an October letter sent to the Health and Human Services Department.

Some advocates are concerned that the drugs are unsafe for children, who make up nearly 75 percent of Texas Medicaid’s 3.2 million recipients. In a 16-state study, Texas had the maximum rate of prescribing multiple mental-health drugs to youths in foster care. Although the number of prescriptions had dropped 19 percent by 2007, Texas was still tops, according to the June study.

John Breeding, a psychologist concerned that the drugs may cause permanent neurological and metabolic damage, told the state, “That so many of our very young children, younger than 4 or even 3 years old, are being given these drugs is so very sad and upsetting.”

And some doctors churn out prescriptions for children and others at an alarming rate. Antipsychotic drugs prescribed to children under 6 grew by 20 percent from 2007 to 2009, according to a November report by the Texas Health and Human Services Commission.

About 1.7 percent of children on Medicaid received antipsychotic drugs in fiscal 2009, state officials said.

Some children are overmedicated: One area doctor routinely prescribes five potent mental-health drugs simultaneously, said one of the state’s top prescribers. He said he tries to scale back the number of drugs the children are on.

Some experts believe that medication has pushed aside talk therapy, which might be effective and reduce medication needs.

“I do think that a lot of people receive medication without any therapy,” said Tami Mark, a researcher with Thomson Reuters in Washington, D.C. “Most of the literature suggests that therapy is effective and can improve the effectiveness of the medication. So it’s better to get both.”

Top prescribers

The child, 31/2, suffers from shaken baby syndrome. When stressed, he pulls at his ventilator hoses and tracheotomy tube so much that his hands must be tied to the bed. He is prescribed antipsychotics because other sedatives could suppress the breathing centers of the brain.

Grassley asked Texas and other states for the top 10 prescribers who billed Medicaid for certain drugs. The Star-Telegram used prescriber numbers to identify the doctors, then sorted and tallied the drugs they were prescribing. Also reviewed was information on other mental-health drugs that have cost taxpayers about $1.3 billion during the past five years.

The analysis and research found:

In the past two years, 72 Medicaid providers wrote 186,992 prescriptions, an average of 2,597 each.

The state’s top prescriber, child psychiatrist G.K. Ravichandran of Houston’s Shamrock Psychiatric clinic wrote 27,000 scripts for the anti-anxiety drug Xanax in the past two years. The next-closest physician wrote 6,300.

Under his license, 44,138 prescriptions for antipsychotic drugs were written, at a cost to Medicaid of $6.4 million.

Ravichandran did not respond to repeated requests for comment.

Dr. Fernando Siles, a child psychiatrist in Greenville, is the second most prolific Medicaid prescriber. He sees children from across North Texas, including Tarrant County.

In the past two years, Siles’ medical license was used to write 13,601 antipsychotic prescriptions at a cost of $4.6 million.

Siles, who treats solely Medicaid recipients, some as young as 3, has three nurse practitioners who also write prescriptions under his license, he said.

Many children referred to him are already on multiple antipsychotic drugs, and he tries to cut back, he said. “Fifty percent of the medications I prescribe, I did not start them on the medicine,” he said. “They came from other doctors.”

There may be other physicians who are also prescribing high volumes of antipsychotic drugs but aren’t as easily detected, state officials say.

Some physicians use a clinic to hide the volume of their prescribing, said Stephanie Goodman, spokeswoman for the Texas Health and Human Services Commission, which oversees Medicaid.

“To be quite honest, we feel like single doctors have started to bill under clinics to maybe hide that, to make it look like it’s not a single doctor prescribing all these,” she said.

State sanctions

The 13-year-old girl suffered depression and post traumatic stress disorder. She cut her arms and stomach. Her stepfather molested her, and then beat her when she refused to have sex. She cannot sleep at night for the nightmares of being locked in a closet. Prescribed an antipsychotic off label, she begins to have fewer flashbacks and nightmares.

Another top prescriber, Dr. Adolphus Lewis of Fort Worth, is a family physician who also treats the elderly. In one year ending in 1994, he wrote 61 prescriptions for one male patient, including enough Vicodin and Valium to pop seven pills a day.

The state medical board accused Lewis of prescribing “medically excessive” numbers of pills to a woman who later died, court documents show. Her death, which was due to respiratory failure, implicated three drugs, including two that Lewis previously prescribed, according to the documents.

Lewis did not respond to multiple requests for comment.

About 40 percent of the 72 top Medicaid prescribers among certain antipsychotic drugs have been disciplined by the state medical board. By comparison, last year the state disciplined less than 1 percent of the state’s 62,521 doctors.

In 2002, the Texas Medical Board restricted Ravichandran’s license for five years for “unprofessional or dishonorable conduct that is likely to deceive or defraud the public or injury the public.” The restriction, which was not related to prescriptions, was lifted within three years.

Read the rest of the article here: http://www.star-telegram.com/2010/12/11/2697798/some-doctors-handing-out-prescriptions.html#tvg#ixzz17uj9SWtQ

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Drug-firm executives under new scrutiny in Medicare fraud

Tuesday, November 9th, 2010

The Washington Post, November 9, 2010

By Anna Edney

Federal inspectors want to prevent drug-company executives from doing business with the U.S. government when their companies are convicted of Medicare fraud.

Under guidelines from the Department of Health and Human Services’ Office of Inspector General, executives can be barred from contracting with federal health programs when they knew, or if the inspector general concludes they should have known, about fraud at their firms. The guidelines were posted Oct. 20 on the office’s Web site.

Authorities have been spurred by large settlements, said Robert DeConti, chief of the administrative and civil remedies branch in the inspector general’s Office of Counsel.

GlaxoSmithKline was ordered to pay $750 million on Oct. 26 for sale of defective drugs, and Pfizer agreed to pay $2.3 billion in September 2009 for fraudulent marketing of medicine. A company that employs someone barred from doing business with the government cannot receive federal payments.

That is definitely a renewed emphasis, maybe a new emphasis, on holding individuals accountable,” DeConti said in an interview last month.

Certain crimes, such as patient abuse or a felony conviction of health-care fraud, require automatic exclusion by law, according to the inspector general’s Web site.

The inspector general has the discretion to bar a person in other cases, such as a misdemeanor conviction.

Company executives might also be sanctioned if their employers are convicted of misconduct or they may be blocked from doing business with federal agencies. The inspector general has used this option 31 times since 1996. Most cases involved smaller, closely held companies such as those that make durable medical equipment, DeConti said. Twenty-eight people have been barred, he said.

Federal inspectors are targeting “complex cases that might involve global pharmaceutical manufacturers that are settling larger cases,” he said. “We have cases under development right now against individuals in that kind of company.”

In 2008, the inspector general barred three executives at Purdue Pharma. The officials at the drugmaker, based in Stamford, Conn., pleaded guilty to a misdemeanor for misbranding the painkiller OxyContin.

They were excluded from doing business with the government for 15 years. Purdue paid $634 million to settle criminal and civil claims that it misled patients and doctors about the addictiveness of OxyContin.

“An exclusion for 15 years is basically a career-ender,” said Cory Andrews, senior litigation counsel at the Washington Legal Foundation, who has criticized the Food and Drug Administration for what he calls excessive enforcement.

Pfizer has “invested substantial resources” to create a compliance program under which every employee gets mandatory training, said Christopher Loder, a spokesman for the New York-based drugmaker. He declined to comment on whether Pfizer executives might be targeted with exclusion.

Mary Anne Rhyne, a spokeswoman for London-based Glaxo, also declined to comment.

Tens of thousands of people and companies are excluded, including nurses, physicians, dentists, pharmacies and durable medical equipment suppliers.

“The current administration is feeling that they want to increase enforcement in this area, and they’re of the belief that monetary settlements aren’t sufficient, and they need to charge individuals to deter the conduct,” Jeffrey Senger, a lawyer at Sidley Austin LLP in Washington and former acting chief counsel with the FDA, said in a telephone interview.

Read the rest of the article here: http://www.washingtonpost.com/wp-dyn/content/article/2010/11/08/AR2010110805757.html

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Grassley: Are high prescription rates a sign of fraud?

Monday, October 25th, 2010

Fierce Health Care, October 25, 2010

by Sandra Yin

A Miami doctor wrote nearly 97,000 prescriptions in 18 months for mental health drugs. An Ohio physician wrote more than 100,000 prescriptions in two years. A Texas doctor wrote more than 14,000 prescriptions for the anti-anxiety drug Xanax. These alarmingly high prescriptions numbers for mental health drugs covered by Medicare and Medicaid have prompted Senator Charles Grassley (R-Iowa) to call for an investigation, the Associated Press reports.

“The federal government has an obligation to figure out what’s going on here,” he wrote in an email sent to the AP last week. “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.”

Grassley, a ranking member of the Senate Finance Committee, which oversees Medicare and Medicaid, noted that it’s possible there wasn’t any fraud. Still, he maintained the importance of clarifying what was going on and fixing whatever was broken. His comments came after he sent a letter to Department of Health and Human Services Secretary Kathleen Sebelius and Centers for Medicare and Medicaid chief Donald Berwick, complaining that CMS wasn’t doing enough to oversee contractors to prevent fraud and abuse.

Read more: http://www.fiercehealthcare.com/story/grassley-are-high-prescription-rates-sign-fraud/2010-10-25#ixzz13PcCmScJ

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Top prescribers under Senate’s microscope

Monday, October 25th, 2010

U.S. Sen Charles Grassley, R-Iowa, examined Minnesota doctors as part of his investigation into the overprescription of drugs, at great cost to Medicaid and Medicare.

Star Tribune
By Jeremy Olson
October 25, 2010

Minnesota doctors are again under the microscope of an influential U.S. senator from Iowa — this time because of concerns that expensive medications are being overprescribed at great cost to the publicly funded Medicaid and Medicare programs.

U.S. Sen. Charles Grassley, R-Iowa, notified federal authorities Wednesday that he found potential examples of overprescribing after requesting lists from states, including Minnesota, of doctors who issued the most prescriptions for antipsychotic and narcotic medications in 2008 and 2009.

The most egregious example, cited in a letter to Health and Human Services Secretary Kathleen Sebelius, was a Florida doctor who wrote 96,685 prescriptions for mental health drugs in 21 months and billed the cost to the state’s Medicaid program.

Grassley’s letter mentioned no Minnesota physicians, instead pointing out doctors in Ohio, Oklahoma and South Dakota who prescribed many more high-cost drugs than their colleagues to poor and disabled Medicaid patients.

Grassley’s findings don’t prove fraud or overprescribing, but they could cause doctors to be removed from participating in Medicare and Medicaid, government health programs that, between them, insure some 100 million elderly, poor and disabled Americans. He urged federal authorities to pick up the trail.

“This trend is found again and again across the states,” Grassley wrote, “suggesting that top prescribers stand out not only against other providers in their state, but against the very top prescribers in those states.”

Last April, Grassley asked Minnesota authorities for a list of 10 doctors who submitted the most claims to the Department of Human Services for prescriptions of such specific antipsychotics as Seroquel and such narcotics as OxyContin.

The state provided the information in May. It also conducted its own review to determine whether the prescriptions appeared appropriate, and whether the top prescribers of antipsychotics were in appropriate specialties, such as psychiatry.

A department spokeswoman said no formal investigations were launched as a result of the review.

None of the doctors on the Minnesota list appeared to approach the excesses Grassley highlighted in other states. Several are on staff at rural mental health centers, which puts them in a position to issue more prescriptions.

Roseville psychiatrist Dr. Roger Johnson stood out on the list, issuing 1,605 prescriptions for Seroquel to patients in Minnesota’s managed-care and fee-for-service Medicaid programs in 2009 — up from 916 prescriptions in 2008. Documents show that his claims to the fee-for-service program alone approached $450,000 last year. The next closest doctor billed the state for just 688 Seroquel prescriptions last year.

Read entire article here:  http://www.startribune.com/lifestyle/health/105576013.html?page=2&c=y

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Mental health clinics targeted in Medicare fraud crackdown

Friday, October 22nd, 2010
Agents raid chain of mental health clinics accused of filing false claims

Miami Herald

By Jay Weaver
October 22, 2010

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.

Federal prosecutors charged the company and four top executives with scheming to fleece $200 million from the taxpayer-funded healthcare program.

“Some of the patients were not even cognizant of where they were or what was going on around them,” said Lanny A. Breuer, assistant attorney general of Justice’s criminal division.

“Other patients were simply there to make money, through kickbacks,” said Breuer, who flew to Miami for a news conference at the U.S. attorney’s office.

At the crack of dawn Thursday, federal agents arrested Lawrence S. Duran, 48, of North Miami, the owner of American Therapeutic; Marianella Valera, 39, the company’s CEO; Margarita Acevedo, 40, the firm’s marketing director; and Judith Negron, 39, vice president of a subsidiary.

Since 2003, Medicare paid the chain a total of $84 million — taxpayer money that authorities say was mostly blown on luxury items, including Duran’s 2009 Maserati Quattroporte and Valera’s bayfront condo at the Opera Towers. Duran and Valera also spent the money on trips to Switzerland, Dominican Republic and Cuba.

The feds obtained court orders to freeze the employees’ personal and corporate bank accounts in an attempt to salvage possibly a few million dollars of the Medicare payments.

The indictment charged American Therapeutic, a seven-clinic chain, and its subsidiary, Medlink Professional Management Group, Inc., and the four employees with conspiring to defraud Medicare for group therapy sessions that were either unnecessary or not provided to patients, many suffering from Alzheimer’s or dementia.

The ring is also accused of paying bribes to recruiters who tapped into an endless supply of patients from assisted-living facilities and halfway houses, who also received kickbacks for the referrals.

The accused ringleaders, Duran and Valera, instructed doctors and employees to alter patient charts, medical diagnoses, therapy session notes and drug medications to make American Therapeutic’s thousands of claims look legitimate to Medicare, according to court documents.

Whether they harmed any patients is the subject of “an ongoing investigation,” Breuer and other Justice Department officials said.

On Thursday morning, 160 agents from the FBI and Health and Human Services raided American Therapeutic’s clinics at 1801 NE Second Ave. and other South Florida locations. They carried out boxes of records, computers and other evidence and loaded them into vans. Patients who showed up for their daily mental health sessions were asked to leave.

IN COURT

Later Thursday, in federal court, the four defendants had their first appearance. They were dressed in Euro-style T-shirts and pants — though they were cuffed at the wrists and ankles.

Jennifer Saulino, a Justice Department attorney, recommended no bond for Duran and Valera and $1 million bail for Negron and Acevedo.

“This was the largest Medicare fraud scheme in this district, and, as you know, Your Honor, that’s saying quite a lot,” she told Magistrate Judge Edwin Torres. “This was a big fraud, and these were big players.”

Acevedo was granted a $350,000 bond. The other three will have pretrial detention hearings on Tuesday.

The scope of South Florida’s alleged $200 million case surpassed that of a vast network of Armenian gangsters and their associates charged last week with operating phantom healthcare clinics to try to cheat the federal program out of $163 million.

U.S. authorities touted that case as “the largest Medicare fraud scheme ever perpetrated by a single criminal enterprise,” with 73 people charged in New York, Los Angeles and other cities.

The Miami indictment signaled the Justice Department’s latest assault against rampant Medicare fraud in South Florida.

U.S. Attorney Wifredo Ferrer called mental health fraud the latest scam in a series involving medical equipment, HIV infusion and home diabetic services.

Authorities said the magnitude of such fraud is eye-opening: More than 100 Florida mental health centers, mostly in Miami-Dade, submitted $425 million in bills to the Medicare program last year.

In turn, Medicare paid $171 million to the Florida clinics, with almost all of that money going to mental health operators — such as American Therapeutic — in Miami-Dade, Broward and Palm Beach counties.

Indeed, reimbursements to South Florida clinics alone accounted for 56 percent of Medicare’s entire payments to mental health centers nationwide last year, according to the agency’s records.

American Therapeutic is not only Medicare’s highest biller of mental health services in the country, but Duran also has been active in a Washington, D.C., lobbying group called The National Association for Behavioral Health.

A video of Duran’s visit in January to the congressional office of U.S. Rep. Ileana Ros-Lehtinen, R-Miami, was posted on You Tube, in which he talked about protecting mental health services under the healthcare reform legislation passed by Congress this year.

Also, Duran and two other South Florida healthcare businessmen were pictured with the congresswoman in a photo posted on the Behavioral Health’s website.

Confronted with an onslaught of suspicious claims, Medicare administrators began placing many suspect Miami-Dade mental health clinics on what is known as “prepayment review.”

That means payments are frozen until Medicare can verify that doctors prescribed the services, the clinics provided the counseling sessions, and patients received and benefited from them.

Without confirmation, the clinics aren’t paid, which has led to some shutting down.

Read the entire article here:  http://www.miamiherald.com/2010/10/22/v-fullstory/1885571/mental-health-clinics-targeted.html

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

Wednesday, October 20th, 2010

Lexington Herald Leader, October 20, 2010

By MAR CABRA AND JOHN DORSCHNER

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.

“The conclusion might be that there isn’t any fraud, but it’s important to reach a conclusion one way or the other and fix whatever is broken,” Grassley said.

In the Sebelius letter, Grassley said his concern was triggered by a “Florida provider who wrote 96,685 prescriptions for mental health drugs in a 21-month period.” The letter did not identify the provider, but state records confirm that it is Fernando Mendez-Villamil, a psychiatrist with an office on Coral Way.

State Medicaid records independently obtained by The Herald show that over a two-year period Mendez-Villamil wrote almost twice as many prescriptions for mental health drugs as the No. 2 Medicaid prescriber in the state.

Robert N. Pelier, attorney for Mendez-Villamil, said Wednesday he and his client learned about the letter only after receiving a call from The Herald. He said the psychiatrist tried to reach Grassley’s office when his prescription numbers were made public to give the proper context to the doctor’s prescription patterns and “why he is an intricate part in the community.” Pelier said he had not received a response from Grassley.

“What my client believes is that he’s been a victim of this health care debate,” the attorney said. “The majority of his prescriptions are expensive because they’re cutting-edge pharmaceuticals.”

Pelier said Mendez-Villamil has been recently terminated from the Medicaid program and is now seeing some patients for free. “We are pursuing legal action against AHCA Agency for Health Care Administration for the improper termination of doctor Mendez-Villamil from Medicaid,” he said. The lawsuit was filed late July.

Meanwhile Ryan Wiggins, spokesman for the Florida Office of the Attorney General, confirmed there is an ongoing investigation into Mendez-Villamil that involves “complicated issues of medical necessity … We cannot comment further at this time.”

Last December, Grassley’s office calculated Mendez-Villamil’s numbers meant “this physician wrote approximately 153 prescriptions each and every day, assuming he did not take vacations.”

Earlier this year, Mendez-Villamil told The Herald that he works long hours and often gives each patient four or five prescriptions, accounting for the large numbers.

In April, Grassley wrote to all state Medicaid agencies requesting data about certain mental health drugs. On Wednesday, Grassley’s office said the Florida provider identified by The Herald as Mendez-Villamil had the second-highest number of prescriptions in the nation for the generic form of Xanax in the data they analyzed.

The Wednesday letter also noted that the top Zyprexa provider in Florida wrote 1,356 prescriptions for 309 individuals in 2008 and 1,238 for 236 in 2009. The Herald independently verified from state data that this provider was Mendez-Villamil, and he wrote more than twice as many Zyprexa prescriptions as the No. 2 provider in the state.

“I want to be clear that none of the information provided suggests any illegal or wrongful behavior,” Grassley wrote. But such huge numbers “might also suggest overutilization or even health care fraud. The only way to determine veracity is through appropriate oversight by Health and Human Services and continued monitoring by the Congress and the Senate Finance committee.”

Read more: http://www.kentucky.com/2010/10/20/1488418/grassley-seeks-probe-into-numbers.html#ixzz12xQPjZzm

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Pfizer Makes Bank from DrugsThat Can Kill You—To say Pfizers been accused of wrongdoing is like saying BP had an oil spill

Monday, July 12th, 2010

AlterNet
By Martha Rosenberg
July 10, 2010

The drug company Pfizer is best known for Lipitor, a drug that brings cholesterol down and Viagra, a drug that brings other things up.

But the “world’s largest research-based pharmaceutical company” which sits between Goldman Sachs and Marathon Oil on the Fortune 500, is also closely associated with a seemingly never-ending series of scandals.

To say Pfizer’s been accused of wrongdoing is like saying BP had an oil spill. Other drug companies have a portfolio of products, Pfizer has a portfolio of scandals including, but not limited to, Chantix, Lipitor, Viagra, Geodon, Trovan, Bextra, Celebrex, Lyrica, Zoloft, Halcion and drugs for osteoarthritis, Parkinson’s disease, kidney transplants and leukemia.

During one week in June Pfizer 1) agreed to pull its 10-year-old leukemia drug Mylotarg from the market because it caused more, not less patient deaths 2) Suspended pediatric trials of Geodon two months after the FDA said children were being overdosed 3) Suspended trials of tanezumab, an osteoarthritis pain drug, because patients got worse not better, some needing joint replacements (pattern, anyone?) 4) Was investigated by the House for off-label marketing of kidney transplant drug Rapamune and targeting African-Americans 5) Saw a researcher who helped established its Bextra, Celebrex and Lyrica as effective pain meds, Scott S Reuben, MD, trotted off to prison for research fraud 6) was sued by Blue Cross Blue Shield to recoup money it overpaid for Bextra and other drugs 7) received a letter from Sen. Charles Grassley (R-Iowa) requesting its whistleblower policy and 8 ) had its appeal to end lawsuits by Nigerian families who accuse it of illegal trials of the antibiotic Trovan in which 11 children died, rejected by the Supreme Court. And how was your week?

Nor does Pfizer back down when faced with legal troubles.

Even as it was under the probation of a 5-year Corporate Integrity Agreement (CIA) with Health and Human Services for withholding $20 million in Lipitor rebates owed to Medicaid in 2002, it off-label marketed its seizure drug Neurontin and entered into another CIA in 2004.

Read entire article:  http://www.alternet.org/story/147467/

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