Tuesday, October 9, 2018

Why Are Older Physicians More At Risk for Criminal Prescribing Charges? Recent Case: Older Santa Rosa Doctor Indicted For Unlawfully Prescribing Fentanyl And Oxycodone

I often see older physicians caught up in criminal prescribing cases. Part of it may due to impairment and part of it may be due to trusting others including patients. Older physicians need to seriously question their conduct and business arrangements since failure to follow the standard of care can be criminal if it involves scheduled drugs. The standard of care for pain management has changed drastically the last 10 years and the record keeping requirements have also increased.  

A recent case illustrates this issue. On October 2, 2018, a federal grand jury indictment against Santa Rosa neurologist Thomas Keller, age 72, was unsealed charging him with distributing Schedule II and IV controlled substances outside the scope of his professional practice and without a legitimate medical need. Dr. Keller was also charged with two counts of health care fraud related to billing. An indictment merely alleges that crimes have been committed, and Dr. Keller, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt. 

According to the indictment filed September 27, 2018, and unsealed on October 2, 2018,  in June of 2017, Dr. Keller, 72, of Santa Rosa, was a licensed physician when he knowingly distributed Oxycodone to a person knowing that the distribution was outside the scope of his professional practice and not for a legitimate medical purpose.  

Healthcare Partners (a Medicare Advantage Provider) to Pay $270 Million To Settle False Claims Act Liabilities


It is not only health care physicians, hospitals, medical groups, laboratories and other companies that can get sued in qui tam cases. Recently a California-based independent physician association reached a settlement in a false claims act with the government. 

The settlement came after a voluntary disclosure. While the voluntary disclosure is expensive, in the long run it is much more effective and helps ensure that the provider will not be excluded from Medicare. This settlement also resolves a whistleblower lawsuit. The claims resolved by the settlement are allegations only, and there has been no determination of liability.

HealthCare Partners Holdings LLC, doing business as DaVita Medical Holdings LLC, agreed to pay $270 million to resolve its False Claims Act liability for providing inaccurate information that caused Medicare Advantage Plans to receive inflated Medicare payments. DaVita is headquartered in El Segundo, California.

Sunday, October 7, 2018

Owner of MRI and Diagnostic Companies Sam Solakyan Indicted for Honest Services Mail fraud for Alleged Payments for Referrals

Workers' compensation fraud cases relating to alleged payments for referrals or "scheduling services" are still being filed here in California. In addition, cases that spin out of other prosecutions can take a few years to be charged. 

On September 25, 2018, an Indictment was unsealed against Sam Sarkis Solakyan for alleged conduct that related to other federal criminal cases pending in the Southern District of California (San Diego) against other defendants. Mr. Solakyan is presumed innocent and Indictments are not evidence. 

Mr. Solakyan owns a number of diagnostic companies (Vital Imaging, Inc., San Diego MRI Institute, Global Holding LLC, Empire Radiology LLC, Access Integrated Healthcare LLC, Access Imaging LLC, Paramount Management Services LLC and Capital Edge Holding LLC).  Mr. Solakyan is charged with conspiracy to commit honest services mail fraud as well as aiding and abetting and criminal forfeiture.  

The charges arise primarily out of payments that are allegedly for referrals. First, cash payments that Mr. Solakyan's companies allegedly made to chiropractor Steven Rigler DC for referrals.  Dr. Rigler was charged in 2015 and already pleaded guilty. 

This case received some publicity, in part, because Mr. Solakyan hired the former District Attorney for Los Angeles County as chief legal counsel for his company Global Holdings but it is not known whether there will be reliance on the advice of counsel as a defense.  


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