Tuesday, August 5, 2014

OIG Semiannual Report to Congress Oct-2013 - March-2014 (For those who keep denying there is a problem in the compounding industry --note the National Respiratory Services case in the report and quoted below!!)



Florida – Jose Teijeiro was the manager and registered agent of Greenwall Pharmacy Discount, Inc. (Greenwall Pharmacy). According to court records, Teijeiro and his co-conspirators paid recruiters to refer Medicare beneficiaries to Greenwall Pharmacy, where their Medicare numbers were used to file false claims for various health care benefits, primarily prescription drugs. Teijeiro also purchased false invoices from a pharmaceutical wholesaler. Medicare Part D plan sponsors paid Greenwall Pharmacy approximately $6.8 million in reimbursement for the false claims. Teijeiro was sentenced to 5 years and 3 months of incarceration and ordered to pay $6.8 million in restitution after pleading guilty to conspiracy to commit health care fraud.

Kentucky – National Respiratory Services, LLC (NRS), was a Louisville-based mail-order pharmacy. In July 2006, Medicare drastically reduced the reimbursement rate for compounded drugs to discourage companies from using those particular codes. On July 1, 2007, Medicare began denying all claims for inhalation compounded drugs, deeming them “medically unnecessary.” According to the indictment, NRS allegedly marketed directly to doctors who specialized in treating respiratory illnesses, and solicited business from these doctors to supply their patients with the drugs that the doctors prescribed to treat asthma, emphysema, and other respiratory illnesses. Between July 2006 and June 2008, NRS compounded drugs and then falsely represented that the drugs were FDA-approved when, in fact, these drugs were not FDA approved, were of various potencies, were non-sterile, and therefore were adulterated and misbranded. NRS was ordered to pay $2 million in restitution, joint and several, after pleading guilty to health care fraud charges. NRS owner Chris Keegan, vice-president Johnny Perry, consultant/minority owner Jim Rives, and pharmacists Linda Schmidt and Leo Parrino were all sentenced in connection with this case.
quoted here  and entire report found at http://www.scribd.com/doc/235957326/75/Prescription-drug-fraud

 

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