DOJ arrests 600 in latest health care fraud crackdown

Last week, the Department of Justice announced charges for more than  600 people, including 165 doctors, nurses and other medical professionals, in what appears to be the largest crackdown on health care fraud in U.S. history.

The department also announced that 2,700 individuals had been barred from participating in Medicare, Medicaid or other federal health care programs, including 587 medical professionals who had been sanctioned for “conduct related to opioid diversion and abuse.”

Related: Health care fraud recovery dips to $2.6B, according to federal report

The investigation was a massive effort involving multiple state and federal agencies, including 30 state Medicaid fraud detection units, the FBI, the Drug Enforcement Agency, the IRS and the Department of Health and Human Services.

Attorney General Jeff Sessions described the action as a major achievement in combating what he described as loathsome abuse by members of the medical profession.

“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” he said. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics.

The allegations against the accused vary, but most center on making “medically unnecessary” prescriptions, some of which were never even filled or distributed to patients. The Justice Department says that the charges relate to more than $2 billion of fraudulent billings to Medicare, Medicaid, the VA and private insurers.

The most salacious example comes from California, where 33 people were indicted in a $660 million insurance fraud scheme. One member of the conspiracy allegedly provided prostitutes, expensive meals and other incentives to two podiatrists in exchange for fraudulent prescriptions that were then submitted to insurers.

In a press release from the Justice Department, numerous authorities sounded off on what they described as wonton exploitation of the vulnerable by greedy doctors and other corrupt medical professionals.

The expression of compassion for those suffering from opioid dependence is notable coming from Sessions, who throughout his career has consistently supported strict penalties for drug users and opposed efforts to shift the focus in drug policy from penalties to treatment.