David “Jason” Rutland, a pharmacist from a sleepy Mississippi town, pleaded guilty this summer to a massive healthcare fraud scheme that resulted in more that $180 million in fraudulent billings, many of which were covered by TRICARE, a federal program intended to help military service members and families with their healthcare costs. The conspiracy, which also involved Mitchell “Chad” Barrett and Thomas “Tommy” Shoemaker, is being recognized as Mississippi’s largest health care fraud case to date according to local newspaper, The Clarion Ledger.
According to a recent press release from the Department of Justice, Rutland “admitted that he participated in a scheme to defraud TRICARE and other health care benefit programs by distributing medically unnecessary compounded medications.” His practices include a laundry list of illegal activities like adjusting prescription formulas for profit versus patient efficacy, soliciting recruiters to obtain prescriptions for high-margin compounded medications and paying them commissions, and waiving and/or reducing copayments to be paid by beneficiaries and members.
Of the 14-count charges against Rutland, he pleaded guilty to the charge of conspiracy to solicit and pay kickbacks and bribes on July 20 and awaits sentencing on November 30. Depending on the judge’s orders, he could face up to five years in federal prison in addition to restitution fees and the seizure of any assets purchased with the fraudulent money.
The case is just one of the many examples of the increase in kickback schemes in the medical industry, which HealthAffairs.org attributes to the ongoing “COVID-19 epidemic that has placed enormous stresses throughout the health care system”.
If you or your medical practice has been charged with health care fraud, it’s important to discuss all possible avenues of resolution with your lawyers such as a settlement. To speak with our defense attorneys that are specialized in health care fraud, give us a call to set up a confidential consultation at (305) 455 5206.
