The $27 million Novus Health Services fraud case has resulted in 84 years in federal prison for thirteen defendants. This sentencing follows former Novus and Optimum Health Services CEO Bradley J. Harris pleading guilty earlier this year for fraudulent billing and a kickback scheme.
According to plea papers and evidence in trial, Dallas-based Novus defrauded Medicare by submitting false claims for hospice services, giving kickbacks for referrals, and violating HIPAA in order to recruit more patients. Employees at Novus also gave Schedule II controlled substances to patients without guidance from medical professionals, and later moved patients to a new hospice company in order to avoid Medicare’s discipline.
Novus was one of the region’s largest hospice providers before it closed in 2015. When Harris pleaded guilty, he admitted billing Medicare and Medicaid for hospice services that were never rendered nor directed by a medical professional. He also admitted to giving services to ineligible patients. An accountant by trade, Harris used blank, pre-signed prescriptions to distribute controlled substances without physician oversight. He collaborated with Dr. Mark Gibbs and Dr. Laila Hirjee to certify that patients faced terminal illnesses without an examination, and were paid $150 for every certification they signed.
Harris worked with Novus nurses to dispense drugs such as morphine and hydrocodone with pre-signed prescription pads. These pateints were supposed to be...
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