Doctors, nurses among those arrested for Medicare Fraud

7/23/2010

Several doctors and nurses were among those arrested in Miami, New York, Detroit, Houston, and Baton Rouge and accused of billing Medicare for unnecessary equipment, physical therapy and HIV treatments. Federal authorities have indicted 94 suspects for defrauding Medicare of $251 million. More than 360 agents participated in the recent raids, signaling the scope of the problem and the federal government’s emphasis on fraud. Federal officials say a sophisticated network of doctors, clinic owners, patients, and patient recruiters are bilking Medicare because Medicare fraud is seen as more lucrative than dealing drugs and with less severe criminal penalties. One scheme busted involved a medical center in Brooklyn, where eight people are charged with running a $72 million scam that submitted bogus claims for physical therapy for elderly Russian immigrants. “Clinic owners paid patients, including undercover agents, in exchange for using their Medicare numbers and a bonus fee for recruiting new patients,” the New York Times reported.