In recent weeks, the coronavirus pandemic has forced the federal government to lift barriers to telemedicine so patients can get care without leaving home. With the passage of the Coronavirus Preparedness and Response Supplemental Appropriations Act, followed by Executive Orders and agency declarations, telehealth has seen a dramatic expansion—accompanied by federal enforcement and prosecutions. As we have previously reported, increased enforcement in telehealth is a trend that we expect to continue in the coming months and years.
In fact, one telehealth operation recently resulted in the largest healthcare fraud scheme ever charged out of the Southern District of Georgia. On Thursday, prosecutors in Savannah announced charges against a DME operator in California, accused of conspiring to pay kickbacks to physicians in exchange for obtaining DME orders for that the operator would then bill to Medicare. Prosecutors allege that the doctors signed false medical records describing "consultations" of Medicare patients. The prosecution is the 22nd charged as a result of this investigation that already includes the prosecution of eight physicians, two nurse practitioners, two operators of telemedicine companies, and two brokers of patient data.
As millions of people use these services and become more comfortable with telehealth, the expansion of this industry will likely continue after COVID-19. But as telehealth becomes an increasing part of our healthcare system, the Department of Justice has made it clear that "paying kickbacks is not part of telemedicine and will not be tolerated under any circumstances."Â We expect to see telehealth enforcement grow in numbers and expand to practices beyond DME. In light of this expansion, industry participants should exercise caution and ensure robust compliance programs are in place.
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