A federal jury convicted a Tennessee podiatrist today for a scheme to defraud Medicare and TennCare by prescribing and dispensing medically unnecessary foot bath medications and obtaining millions of dollars in reimbursements.
According to court documents and evidence presented at trial, Nathan Lucas, D.P.M., 59, of Memphis, owned and operated a podiatry clinic, Advanced Foot & Ankle Care of Memphis LLC, as well as two in-house pharmacies. Lucas regularly prescribed antibiotic and antifungal drugs to be mixed into a tub of water for patients to soak their feet. These drug cocktails included capsules, creams, and powders that were not indicated to be dissolved in water and some of which were not even water soluble. Lucas chose these medications to prescribe and dispense based on their anticipated reimbursement amount, rather than medical necessity. From October 2018 through September 2021, Lucas caused his pharmacies to submit nearly $4 million in claims to Medicare and TennCare for dispensing expensive foot bath medications that were not medically necessary and not eligible for reimbursement, for which Lucas’s pharmacies were reimbursed over $3 million.
The jury convicted Lucas of five counts of health care fraud. He is scheduled to be sentenced on June 20 and faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
HHS-OIG and TBI investigated the case.
Trial Attorney Sara E. Porter and Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Western District of Tennessee.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Tags: Arrests Healthcare Fraud Medicaid/Medicare Provider Arrest