Seniors Billed $1M Each in Alleged Skin Graft Fraud by Arizona Wound Care Company

Seniors Billed $1M Each in Alleged Skin Graft Fraud by Arizona Wound Care Company
Image By: CBS News

The Justice Department announced on Thursday that federal prosecutors had charged the owners of an Arizona wound care company and two nurse practitioners who collaborated with them for plotting to defraud Medicare of over $900 million after they allegedly targeted elderly patients, many of whom were terminally ill, in a massive medical scheme.

Prosecutors claim the defendants billed almost $1 million for medically unneeded or poorly advised skin graft procedures performed on elderly victims. In addition, hundreds of millions of dollars were purportedly paid in kickbacks for fraudulent Medicare billing as part of the conspiracy.

According to the Justice Department, the defendants administered “unnecessary and expensive amniotic wound grafts” on superficial wounds that didn’t need this treatment, as well as doing so without first receiving the proper antibiotic therapy.

The government claimed that as part of the fraud scheme, Medicare paid two of the defendants more than $600 million over a 16-month period.

In addition, the Justice Department claims that the defendants got more than $330 million in illicit bribes from the graft distributor for purchasing the grafts and setting up Medicare billing.

Attorney General Merrick Garland stated that investigators had taken over $50 million from the alleged conspirators in addition to seizing four expensive automobiles, gold, and jewelry.

The announcement of the skin graft plan was made as a part of a larger, two-week law enforcement operation aimed at numerous healthcare fraud operations around the nation.

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193 defendants, including more than 70 licensed healthcare professionals, were accused of accumulating losses of more than $1.5 billion, according to the Justice Department. These people “[i]ntentionally deceived the health care system,” the FBI said.

“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” Garland stated on Thursday.

A blackmark HIV medication distribution scheme, inadequate addiction treatment facilities for Native American and homeless people, and a Florida nurse practitioner accused of prescribing over 1.5 million Adderall pills over the Internet without first visiting patients were among the other alleged cases made public.

According to Garland, the joint enforcement push aimed to recover illicit cash earned through the alleged behavior and discourage similar schemes in the future.

Reference

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With more than two years of expertise in news and analysis, Eileen Stewart is a seasoned reporter. Eileen is a respected voice in this field, well-known for her sharp reporting and insightful analysis. Her writing covers a wide range of subjects, from politics to culture and more.