Author Archives: Staff

Last week, a critic of the infamous Project Gunrunner program the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has been sent a notice of termination in an alleged act of retaliation.  In ATF’s letter notifying the employee of his termination, they cited the unauthorized posting of documents he had posted to that website as the reason for his dismissal.  Regardless of the reason for the termination, such action makes the government seem hypocritical when they plead for whistleblowers to come forward.

Read more:  http://pogoblog.typepad.com/pogo/2011/06/whistleblower-retaliation-atf-fires-warning-shot-.html

A Florida doctor was recently convicted for pocketing more than $1 million for writing phony prescriptions for unnecessary HIV treatments.  The 72-year-old doctor will spend 20 years of prison for his role in a massive Medicare fraud conspiracy.  The racket was headed by Metro Med’s owner, Damaris Oliva, who cooperated with authorities and was sentenced to about seven years.  Such Medicare fraud is nothing new in Florida.  Earlier this year, 20 individuals from Florida, were indicted in a $200 million Medicare fraud scheme.  Individuals purportedly gave illegal kickbacks to doctors and submitted false claims for mental health services that were never provided.  The scheme included not just doctors but also the owners of medical facilities and marketers for those facilities.  This is well deserved punishment for individuals who defrauded taxpayers and the government.

Read more:  http://www.miamiherald.com/2011/06/27/2288250/medicare-fraud-nets-20-year-prison.html?utm_source=MiamiNews&utm_medium=twitter

As hospice care has become mainstream with more than 1.1 million Medicare patients per year, concerns about excessive costs and misuse have arisen rapidly.  The government has settled with a few hospice care companies in the past and more lawsuits seem to be prevalent.  As marketing of these companies becomes more aggressive, look for more government scrutiny.

Read more:  http://gantdaily.com/2011/06/27/growing-hospice-care-brings-concerns-about-misuse/

The Supreme Court issued a troubling decision that stands as a direct threat to consumer protection within the pharmaceutical industry.  The Court determined that generic drug companies do not share the same level of responsibility as makers of brand-name equivalents, to update their warning labels when significant new risks emerge.  Generic drugs now account for more than 70% of prescriptions filled in the U.S.  The Court’s decision to shield generic drug companies from liability goes against precedent and public policy.

Read more:  http://www.cnn.com/2011/HEALTH/06/23/scotus.generic.drugs/index.html

06/17/11 – In an effort to curtail fraud, Medicare will employ screening technology that is similar to what credit companies already use.  Traditionally, Medicare has paid claims first and asked questions later in a system called “pay and chase.”  With this new technology, Medicare will be able to track large numbers of claims using computer analysis to spot patterns of potential issues.  Medicare has awarded an initial $77 million contract for the new system to defense giant Northrup Grumman and a group of companies.  In discussing Northrop, Medicare anti-fraud czar Peter Budetti said, “We will be able to translate their experience from the private sector into Medicare.”  Note that the government is contracting with a company that has constantly committed fraud against them.  See: Northrop Grumman Agrees to Pay $12.5 Million to Settle Civil False Claims Act Case Alleging Test Violations – http://www.fbi.gov/losangeles/press-releases/2010/la062310.htm

Read more:  http://www.forbes.com/feeds/ap/2011/06/17/general-mobile-telecommunications-us-medicare-fraud_8522267.html