fbtTECH Blog

$1 Billion Telemedicine Fraud Scheme in Tennessee

Telehealth lawsuit

In October, the Department of Justice (DOJ) announced that several individuals and companies were indicted in Tennessee for a $1 billion telemedicine fraud scheme.

According to the DOJ’s press release, the defendants are alleged to have (1) solicited insurance coverage information and prescriptions from consumers across the country, (2) sought doctor approval of prescriptions at severely marked up prices, and (3) billed the services to private insurance carriers.

Although one telemedicine company and its CEO have already pleaded guilty to felony conspiracy, the case is still in its infancy, and as more details emerge, this post will be updated to reflect these developments and offer additional guidance on protecting against public and private payor fraud in the telehealth space.

Implementing health care fraud and abuse safeguards is an important part of telemedicine compliance. Frost Brown Todd’s health care team regularly assists clients with compliance issues surrounding telehealth. For questions and assistance regarding telemedicine compliance, please feel free to contact Andrew Johnson of Frost Brown Todd’s Healthcare Service Team.

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Attorney Spotlight

Michael E. Nitardy is a member in the litigation department. Michael helps clients comply with the proper use and disclosure of personal information in addition to investigating and addressing potential data breaches.