Compliance News Roundup: Largest DOJ Takedown in History

1. Justice Department reaches first settlement with opioid manufacturer - “The Justice Department and Mallinckrodt Pharmaceuticals reached a $35 million settlement Tuesday to resolve allegations that the company failed to report signs that large quantities of its highly addictive oxycodone pills were diverted to the black market in Florida, where they helped stoke the opioid epidemic.” Read more here

2. Former South Dakota hospital CEO indicted for making false statement to HHS - “The former CEO of Pine Ridge (S.D.) Indian Health Service Hospital has been indicted on charges of making a false statement to HHS, according to the Argus Leader.

Wehnona Stabler, who served as Pine Ridge's CEO from 2011 to 2013, said she had not received a gift of more than $350 from any one source, according to a report submitted to HHS in January 2014. However, prior to making the disclosure, Ms. Stabler accepted $5,000 from Stanley Patrick Weber, MD, according to the indictment.

Dr. Weber, a former pediatrician at Pine Ridge, is facing 10 counts of sexual abuse. He was arrested in February and accused of sexually abusing children he treated at the hospital from 1998 to 2011. He has pleaded not guilty in the case, according to the report.” Read more here

3. Largest DOG Takedown in History - “On July 13, 2017, the Department of Justice (DOJ) announced the largest healthcare fraud takedown in history. The coordinated Medicare Fraud Strike Force involved 412 defendants (across 41 federal districts), including 115 doctors, nurses and other licensed medical professionals for their alleged participation that involved approximately $1.3 billion in total false billings. Over 120 of the defendants were charged for allegedly prescribing and distributing opioids and other narcotics. All of this in the wake of the  “opioid epidemic” which the CDC reports approximately 91 Americans die from every day.”

Questions or Comments?