Saturday, March 29, 2008

Neurosurgeon Guilty of Bribery Faces Sentencing

A Searcy, AR neurosurgeon who pleaded guilty to bribery in January will be sentenced Thursday, April 3.  Dr. Patrick Chan pleaded guilty to one bribery count in federal court, admitting he demanded and received kickbacks.  The lawsuit, filed by whistleblower John Thomas, required Chan to pay a settlement of $1.5 million.

The cased hinged on Chan’s request made to a medical equipment distributor for part of his commission on devices used in spine surgeries. 

Click here to read Warren Watkins article in The Daily Citizen Arkansas Neurosurgeon Guilty of Bribery Faces Sentencing.

Thursday, March 27, 2008

Otsuka Pharmaceutical Co. Settles Charges of Illegal Marketing

The U.S. unit of Otsuka’s Pharmaceutical Co. Ltd. has agreed to pay more than $4 million to settle charges that it illegally marketed its anti-psychotic drug, Abilify.  Dr. Joseph Piacentile alleged that the company promoted the drug for pediatric use and to treat dementia-related psychosis among the elderly despite the fact that the drug had not received FDA approval for these uses.

While physicians are allowed to prescribe drugs for “off-label” uses, companies are prohibited from promoting drugs for uses that have not been approved by the FDA.

Approximately $2.3 million of the settlement will go to the federal government, while $1.7 million will be paid to state Medicaid programs.  Dr. Piacentile will receive approximately $348,000 from the federal portion of the settlement.

Click here to read the Forbes.com article, Drug maker pays $4M to settle charges.

Tuesday, March 18, 2008

South Carolina Surgeon Prompts Federal Probe Into Hospital Billing Misconduct

A Sumter, South Carolina surgeon has brought forth allegations that Tuomey Regional Hospital used a scheme from January 2005 to September 2007 “by which it submitted and caused others to submit false and fraudulent claims for payment to Medicare and Medicaid.” The lawsuit, initiated by orthopedic surgeon Michael Drakeford, alleges that the hospital was “bribing” area doctors to go into business with the hospital and offering “kickbacks” to these doctors for their business.

Witnesses apparently include 19 Sumter doctors who signed contracts with the hospital. 

Drakeford filed the claim in Columbia, South Carolina in October 2005, and the federal government took over the case at the end of 2007.  The hospital must file a formal answer to the charges by March 28.

Click here to read John Monk’s article in the The State, U.S. joins surgeon’s suit against hospital accused of fraud.

Monday, March 17, 2008

Acculab Laboratories Settle Medicare Fraud Suit

Florida-based Acculab Laboratories and its president/owner, Joseph T. DeGregorio, have agreed to pay the United States $461,000 to settle allegations that Acculab submitted false claims to Medicare.  The settlement resulted from a suit filed by a private citizen against Acculab.  The suit claimed that Acculab submitted claims to Medicare for laboratory services that were not ordered, were not provided, and were not medically necessary.

The whistleblower who filed the suit will receive $92,200 of the settlement.

Click here to read the U.S. Department of Justice press release, Sarasota, Florida-based Lab Company & Its President/Owner to Pay U.S. $461,000 for Alleged False Claims to Medicare.

Tuesday, March 11, 2008

Northrup Grumman Faces Fraud Charges

Defense manufacturer Northrup Grumman is facing a whistleblower lawsuit alleging that the company inflated labor charges and made false overtime claims while overcharging the government in its multibillion-dollar Joint STARS radar aircraft program.

The lawsuit states, “Northrop profiteered and continues to profiteer by falsely and indiscriminately inflating personnel costs under the Battle Management contracts performed in Melbourne [Florida].”

The suit was filed under the federal whistleblower act by former Northrop Grumman employee Beverly Coss of Melbourne.

Click here to read Richard Burnett’s article in the Orlando Sentinel about Whistleblower lawsuit accuses Northrup Grumman of inflating charges.

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