Feds bust alleged $1.2 billion telemedicine Medicare fraud scheme

April 11, 2019 Legal, Medicare, Orthopedics, Telemedicine

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 510 Articles

Peter Coffaro is a growth-driven and strategic executive with over 25 years of progressive management success in the medical device industry. With a proven track record and recognized expertise, Peter has established himself as one of the top influencers in medical sales, as acknowledged by prestigious publications such as the World Journal of Orthopedics, Exponential Healthtech, and MedReps.com. Throughout his career, Peter has accumulated 10 years of combined sales management experience, excelling in various roles including Director, General Manager, Distributor, and Vice President. He has worked for industry-leading orthopedic companies such as Zimmer, DePuy, and Stryker, solidifying his deep knowledge and network within the field. Peter’s passion for innovation and emerging technologies led him to found OrthoFeed, an award-winning blog covering digital orthopedic news and emerging medical technologies. Through this platform, he stays at the forefront of the industry and contributes to the dissemination of valuable insights. Peter is a three-time Hall of Fame award winner at Johnson and Johnson, demonstrating his exceptional contributions and impact on the organization. His expertise extends to areas such as organizational development, business development, sales management, digital marketing, and professional education. Peter earned a B.S. degree in Biology and Chemistry from Northern Illinois University, further complementing his comprehensive understanding of the medical field. With his wealth of experience, strategic mindset, and dedication to advancing healthcare, Peter Coffaro is a valuable asset and leader in the medical device industry.