Current:Home > FinanceArizona wound care company charged for billing older patients about $1 million each in skin graft scheme-InfoLens
Arizona wound care company charged for billing older patients about $1 million each in skin graft scheme
View Date:2024-12-23 15:06:19
Washington — Federal prosecutors charged the owners of an Arizona wound care company and two nurse practitioners who worked with them for conspiring to defraud Medicare of over $900 million after they allegedly targeted elderly patients — many of them terminally ill — in a sprawling medical scheme, the Justice Department announced Thursday.
According to prosecutors, the defendants carried out medically unnecessary or ill-advised skin graft treatments to older patients at a billing rate of approximately $1 million per patient. The alleged scheme also involved hundreds of millions of dollars in kickback payments in exchange for illegitimate Medicare billing.
The Justice Department said the defendants applied "unnecessary and expensive amniotic wound grafts" without the appropriate treatment for infection and also placed them on superficial wounds that didn't require this treatment. Over a period of 16 months, Medicare paid two of the defendants over $600 million as part of the fraud scheme, the department alleged.
The defendants, according to the Justice Department, also received more than $330 million in illegal kickbacks from the graft distributor in exchange for buying the grafts and arranging to have them billed to Medicare. Investigators seized over $50 million from the alleged conspirators and confiscated four luxury cars, gold, and jewelry, Attorney General Merrick Garland said.
The skin graft scheme was announced as part of a broader two-week law enforcement initiative targeting various healthcare fraud schemes across the country.
The Justice Department said 193 defendants — including over 70 licensed healthcare professionals — were charged for racking up more than $1.5 billion in losses. The individuals "[i]ntentionally deceived the health care system," according to the FBI.
"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 said Thursday.
Other alleged cases announced included a blackmark HIV medication distribution scheme, substandard addiction treatment homes for homeless and Native American populations, and a nurse practitioner in Florida who is accused of prescribing over 1.5 million Adderall pills over the Internet without first meeting with patients.
Garland said the goal of the coordinated enforcement push was to both deter future schemes and claw back fraudulent funds that were obtained by the alleged activity.
- In:
- Medicare
- Fraud
Robert Legare is a CBS News multiplatform reporter and producer covering the Justice Department, federal courts and investigations. He was previously an associate producer for the "CBS Evening News with Norah O'Donnell."
veryGood! (732)
Related
- Prosecutor failed to show that Musk’s $1M-a-day sweepstakes was an illegal lottery, judge says
- 5-year-old migrant boy who got sick at a temporary Chicago shelter died from sepsis, autopsy shows
- New Jersey district settles sex abuse lawsuit involving former teacher for $6 million
- This website wants to help you cry. Why that's a good thing.
- Why Game of Thrones' Maisie Williams May Be Rejoining the George R.R. Martin Universe
- Albuquerque Police Department Chief crashes into vehicle while avoiding gunfire
- Will NFL players participate in first Olympics flag football event in 2028?
- Relive the 2004 People's Choice Awards: From Oprah Bringing Her Camcorder to Kaley Cuoco's Y2K Look
- Volkswagen, Mazda, Honda, BMW, Porsche among 304k vehicles recalled: Check car recalls here
- Watch Paris Hilton's Son Phoenix Adorably Give Her the Best Birthday Morning Greeting Ever
Ranking
- Texas’ 90,000 DACA recipients can sign up for Affordable Care Act coverage — for now
- Michael Strahan's Daughter Isabella Shares Painful Update on Chemotherapy Amid Brain Cancer Battle
- Driver of stolen tow truck smashes police cruisers during Maryland chase
- Sheriff says Tennessee man tried to enroll at Michigan school to meet minor
- Man killed in Tuskegee University shooting in Alabama is identified. 16 others were hurt
- Rachel Brosnahan, Danai Gurira, Hoda and Jenna rock front row at Sergio Hudson NYFW show
- After news of Alexei Navalny's death, it's impossible not to think of Brittney Griner
- Sterling, Virginia house explosion: 1 firefighter killed, 13 injured following gas leak
Recommendation
-
Wicked Director Jon M. Chu Reveals Name of Baby Daughter After Missing Film's LA Premiere for Her Birth
-
Pesticide linked to reproductive issues found in Cheerios, Quaker Oats and other oat-based foods
-
'The least affordable housing market in recent memory': Why now is a great time to rent
-
Why ESPN's Jay Williams is unwilling to say that Caitlin Clark is 'great'
-
Trump’s economic agenda for his second term is clouding the outlook for mortgage rates
-
Q&A: Everyday Plastics Are Making Us Sick—and Costing Us $250 Billion a Year in Healthcare
-
Dandelions and shrubs to replace rubber, new grains and more: Are alternative crops realistic?
-
Science experiment gone wrong sends 18 students, teacher to Tennessee hospital