2024 Shkreli Awards: Dishonorable Mentions
We recently revealed the winners of the 8th Annual Shkreli Awards, our top ten list of the most egregious examples of healthcare profiteering and dysfunction each year. But there are many, many more examples of the ways our healthcare system is broken. Presenting the Shkreli Awards Dishonorable Mentions! These nominees fell just shy of making the final list.
Missed this year’s event? You can watch the recording on YouTube, Vimeo, or our website.
Fraud and Fakery at the Country’s Largest Chain of Methadone Clinics
Source: Katie Thomas and Jessica Silver-Greenberg, Fraud and Fakery at the Country’s Largest Chain of Methadone Clinics, The New York Times
A New York Times investigation claims to have uncovered widespread unethical practices at the largest chain of methadone clinics in the U.S. Acadia Healthcare, the for-profit company running the clinics, allegedly falsified patient records, billed for non-existent counseling sessions, and admitted patients who didn’t meet opioid addiction criteria. Employees reported being pressured to maximize patient numbers which led to unsafe conditions, overwhelmed staff, and compromised care. Regulators have launched investigations, and the company has faced multiple legal settlements for Medicaid fraud and improper billing practices. A spokesperson for Acadia denied the accusations, saying “We take our responsibility to our patients and the communities we serve extremely seriously and patently reject claims that Acadia places profits over patients.” Acadia has been actively lobbying against legislation that could provide methadone access at pharmacies, a practice that could benefit patients but threatens its business model. The company has reportedly earned more than $1.3 billion in revenue since 2022.
Hospital loses piece of patient’s skull, charges him $19,000 for synthetic replacement
Source: Ariel Hart, Lawsuit claims Emory lost part of patient’s skull, billed him $19k for replacement, The Atlanta Journal-Constitution
When Fernando Cluster was admitted to Emory University Hospital Midtown in Atlanta to treat a brain bleed, doctors needed to temporarily remove a portion of his skull to reduce the pressure. But when Cluster returned for his follow up to have the piece of skull reinstalled, it was nowhere to be found and the surgery was canceled. According to a lawsuit filed by Cluster, this resulted in an extended hospital stay while a synthetic skull piece could be manufactured. For the extended stay, replacement skull piece, and second surgery, Cluster was billed $146,000. The synthetic skull piece alone was $19,000. Responding to an inquiry from the Atlanta Journal Constitution, the hospital stated that it does not comment on pending litigation.
Chicago hospital’s c-suite accused of $15 million embezzlement scheme while safety net struggles
Source: Talia Soglin, Ex-Loretto Hospital CEO charged with embezzlement scheme, Chicago Tribune
Under the leadership of CEO George Miller, Loretto Hospital, a small safety net on Chicago’s West Side, attracted a federal investigation for vaccine distribution controversies during the pandemic. Now Miller has been charged with conspiracy to commit bribery as part of a $15 million embezzlement scheme in which hospital contracts were steered to certain companies in exchange for bribes, and payments were authorized for invoices that were not fulfilled. Miller accepted $769,000 in bribes, according to prosecutors, which is more than double the hospital’s income in 2022. Chief Financial Officer Anosh Ahmed, now reportedly in Dubai, and Chief Transformation Officer Heather Bergdahl, who was arrested en route to Dubai, were also included in the indictment. Bergdahl has pled not guilty.
Heartless cardiologist accused of preying on patients to pump up profits
Source: Michael Walter, Cardiologist charged with fraud for allegedly altering patient records, billing for unnecessary procedures, Cardiovascular Business (view the indictment here)
Dr. Niranjan Mittal is a Brooklyn cardiologist charged with healthcare fraud and bribery. Authorities claim Mittal exploited vulnerable patients by subjecting them to unnecessary vascular surgeries, falsifying records, and paying kickbacks for referrals to increase insurance payouts. They also claim he fabricated medical records to justify ordering PET scans, stress tests, and echocardiograms that patients did not need. According to a statement from federal investigators, Mittal targeted lower-income patients and billed more than $100 million in fraudulent charges to Medicare, Medicaid, and private insurers. A criminal case is currently scheduled to move forward in early 2025.