A Maryland gynecologist has agreed on Mar. 26 to pay $507,500 to the United States in order to settle allegations of violating the federal False Claims Act through a fraudulent prescription scheme.
The settlement addresses concerns about fraud against Medicare and TRICARE, which are programs designed to provide healthcare coverage for eligible individuals. The government said such schemes can waste taxpayer dollars and undermine trust in public health systems.
According to U.S. Attorney Kelly O. Hayes, Valinda R. Nwadike, MD, was alleged by federal authorities to have participated in a telemarketing operation that created and signed thousands of fraudulent prescriptions for compounded drugs and durable medical equipment between November 1, 2014, and January 1, 2018. These prescriptions were paid for by Medicare and TRICARE but were allegedly issued after only brief phone calls with patients without physical examinations or review of their medical histories.
“When physicians write prescriptions for medically unnecessary drugs and equipment, they abuse our federal health care programs,” Hayes said. “The U.S. Attorney’s Office continues to work with our partners at DCIS and HHS-OIG to hold fraudulent providers accountable. We’re committed to protecting taxpayer dollars using all available tools, including civil settlement.”
Special Agent in Charge Maureen Dixon from the Department of Health and Human Services Office of Inspector General said: “Civil enforcement is an important approach to safeguarding the integrity of the Medicare program. This settlement demonstrates our commitment to ensuring that Medicare program dollars are only paid for services that are actually needed and appropriate for patients.”
Allison Russo from the Defense Criminal Investigative Service stated: “This settlement highlights DCIS’ unwavering commitment to protecting the integrity of TRICARE... Healthcare fraud is not a victimless crime. It directly harms the American taxpayer and undermines the efforts of honest healthcare providers who are dedicated to serving our military members and their families.”
U.S. Attorney Hayes commended HHS-OIG and DCIS investigators as well as Assistant U.S. Attorneys Matt Shea and Roann Nichols for handling this case.
