Feds bust alleged $1.2 billion telemedicine Medicare fraud scheme

Suspects in the case include executives at five telemedicine companies, the owners of dozens of durable medical equipment (DME) companies and three licensed medical professionals.

The Justice Department announced charges against 24 people who were allegedly involved in a complex $1.2 billion fraud scheme to sell medically unnecessary orthopedic braces to Medicare beneficiaries.

Suspects in the case include executives at five telemedicine companies, the owners of dozens of durable medical equipment (DME) companies and three licensed medical professionals.

Among the telemedicine companies allegedly involved in the scheme were Video Doctor USA, AffordADoc, Web Doctors Plus, Integrated Support Plus and First Care MD.

“These defendants — who range from corporate executives to medical professionals — allegedly participated in an expansive and sophisticated fraud to exploit telemedicine technology meant for patients otherwise unable to access health care,” Assistant Attorney General Brian Benczkowski said in a statement.

“This Department of Justice will not tolerate medical professionals and executives who look to line their pockets by cheating our health care programs.”

According to the DOJ, the implicated companies paid illegal kickbacks and bribes to clinicians working with fraudulent telemedicine companies to refer Medicare patients who were then sold unnecessary back, shoulder, wrist and knee braces.

By Kevin Troung | MedCity News

Image Credit: AndreyPopov, Getty Images

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About Peter Coffaro 629 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the medical device industry. As a District Sales Manager for Stryker Orthopaedics, Peter was responsible for managing and directing a regional sales force to achieve sales and profit goals within the Rocky Mountain region. Previously, he was the Director of Sales & Marketing for Amp Orthopedics. In this role, Peter was responsible for planning, developing, and leading all sales and marketing initiatives. Peter is a former orthopedic distributor in the Pacific Northwest. He has also worked with DePuy Orthopaedics as well as Zimmer, and held positions in sales, sales training, and sales management. Peter has an extensive background in organizational development, business development, sales management, negotiating and P&L management. Peter holds a B.S. degree in Biology from Northern Illinois University.

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