Thursday, April 25, 2019

Colorado Doctor Convicted Of Health Care Fraud and Obstruction of Justice. Admitted Shredding Patient Charts During the Investigation.

A recent health care fraud trial focused on patients' insurance being billed for procedures not performed or with extensive patterns of upcoding as well as obstruction of justice for shredding charts during the investigation. On April 18, 2019, Dr. John Van Wu of Golden, Colorado was found guilty of mail fraud and obstruction of justice charges by a jury. The federal jury trial lasted one week before U.S. District Court Judge R. Brooke Jackson.  

According to court records and argument at trial, Dr. Wu operated a medical clinic at locations in west Denver between January 2011 and March 2015.  During that time period the government alleged that he billed employee benefit programs and insurers for services that were never actually rendered and not medically necessary.  

The obstruction charge arose from when he responded to a grand jury subpoena asking for patient files.  During the trial, over a dozen of the doctor’s former patients testified that they did not have many of the ailments described in those files and did not get the expensive procedures billed to insurance.  For example, the patient files described days-long nosebleeds followed by nasal cauterization procedures, but patients testified that neither happened.  Other files described diagnoses related to migraine headaches and frequent administrations of injections to treat those agents.  Patients testified that those, too, did not occur.  The government alleged that the patient files were fabricated.

Testimony at trial also supported the government's theory that Dr. Wu billed approximately 95% of his office visits as the longest, most complex, and highest-reimbursing type of office visit, despite the fact that his patients had relatively simple and routine ailments that did not need that level of service.  During his testimony, Dr. Wu admitted that he shredded patient files while the investigation was ongoing.

This is not the end of Dr. Wu's legal issues. He is separately charged with distributing oxycodone outside the usual course of medical practice and for no legitimate reason and for obstruction by falsifying patient charts related to those prescriptions.  Trial on those counts is scheduled to begin on July 8, 2019.

Posted by Tracy Green, Esq.
Green and Associates, Attorneys at Law


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