Philadelphia Pharmacy Charged in $2 Million Sale of Unregulated HIV Meds

Pennsylvania Attorney General Dave Sunday has announced charges against a Philadelphia pharmacy due to a criminal scheme involving unregulated HIV medications that were billed through Medicare and Medicaid.

Just the Facts

Surnil Pharmacy, which primarily operated as Haussemann’s Pharmacy, has been charged with dispensing unregulated HIV medications and billing over $2 million in reimbursement to Medicaid and Medicare as if the medications came from legitimate distributors. The pharmacy, owned by Subhash Patel, has been charged with 3 counts of Medicaid fraud, 1 count of theft by deception, and 1 count of violating the Controlled Substance, Drug, Device, and Cosmetics Act.

Employees at the pharmacy told investigators that the HIV medications on the pharmacy shelves were not from legitimate wholesalers. The medication bottles were described as “sticky,” and it appeared that labels had been removed. Employees confirmed that the owner, Patel, was acquiring HIV medications from an unknown source and putting them on the pharmacy shelves for dispensing. Investigators confirmed that the medications were not from legitimate sources; however, there was no evidence that any patient experienced actual harm from taking the medications.

Haussemann’s Pharmacy, as well as 4 other pharmacies also owned by Subhash Patel, have since closed. Investigators estimate that almost 100 000 tablets of unregulated HIV medication were dispensed to patients.

Attorney General Comments

The case was jointly investigated by the Pennsylvania Office of the Attorney General and the US Department of Health and Human Services–Office of the Inspector General. The case will be prosecuted by the Office of Attorney General Medicaid Fraud Control Section.

“This pharmacy cut corners to maximize profits while putting patients at risk and defrauding taxpayers who fund the Medicaid program,” Attorney General Sunday said in a press release. “Our thorough investigation revealed that patients who depended on these life-saving medications were, in reality, receiving diverted, or unregulated, drugs that the pharmacy obtained from unknown, unapproved sources.”

The Takeaway

The government is taking prosecution of fraudulent billing to Medicare, Medicaid, and other federal programs extremely seriously. This is evidenced by the fact that three-quarters of the funding for the Pennsylvania Medicaid Fraud Control Unit is provided by the US Department of Health and Human Services under a multimillion-dollar grant. Medications should always be sourced from legitimate wholesalers, and federal programs should only be billed for reimbursement when appropriate.

Reference

AG Sunday’s Medicaid Fraud Control Section charges Philadelphia pharmacy in $2M scheme involving sales of unregulated HIV medication. https://www.attorneygeneral.gov/taking-action/ag-sundays-medicaid-fraud-control-section-charges-philadelphia-pharmacy-in-2m-scheme-involving-sales-of-unregulated-hiv-medication/