Wednesday, September 23, 2015

Page 5 Makes The Federal Health IT Strategic Plan Bullshit!









The federal strategy for health IT has evolved. Through implementation of the Health Information Technology for Economic and Clinical Health (HITECH) Act of 2009, as well as long-term development and use of electronic health systems by Department of Defense and Department of Veterans Affairs, the federal government invested heavily in health IT adoption and electronic information. Efforts primarily concentrated on EHR adoption and foundational work to expand health information exchange. The successes of these initial efforts resulted in the accelerated maturation of the health IT market towards the widespread use of health IT and information exchange. This led to a clearer federal understanding of marketplace strengths and weaknesses, and of the particular needs and interests of individuals and communities.
            The ONC makes a remarkable statement while discussing a Healthcare Industry that already receives nearly 50% support by Medicare, Pensions, and Medicaid AND just received a $35 Billion HITECH injection that has created a bubble in the EMR, EHR, and Healthcare Information Technology “market.”  There is absolutely NO way that any entity can glean useable market statistics from the HealthcareIT buying activity of providers over the last five years unless Government plans to inject another $35 Billion+ into this sector over the next 5 years.
            To further complicate any historical analysis, the Affordable Care Act has created a fundamentally new landscape of incentives and dis-incentives in the overall healthcare market that makes any realistic analysis of quality and cost virtually impossible.  @mcuban , billionaire investor and member of the Emmy Award winning Shark Tank Cast, has discussed the artificial marketplace in healthcare over the last couple of years.  Mark Cuban was a lead investor in personal health mobility platform integration company Validic in 2013.  But, let’s pretend that we can make an analysis.
            Recently, Congress has stated that the HITECH program was “Doomed from the start.” because HITECH did not address areas concerning interoperability, and data sharing.  I was involved in submitting comments prior to the passage of HITECH.   The initial proposals regarding interoperability were strong and promising; the legislation that passed congress was an abomination that allowed the public funding of private provider follies in health technology purchases. 
            The perception of the total lack of interoperability and what vendors do to influence government to change attitudes can be seen in what Epic Systems did when it felt pressure surrounding its closed system architecture.  Epic Systems hired a Lobbyist Bradford Card, brother of Andrew Card (George W Bush’s Chief of staff).  Bradford has virtually zero healthcare expertise outside of lobbying for the Greater New York Hospital Association.  Yet Bradford assures the US Healthcare system, “Epic has been the “subject of misinformation.” His firm will work to set the record straight.  “There have been stories that they're not interoperable, when in fact they are.”   Well I can certainly sleep better at night knowing Bradford has healthcare interoperability covered?   Epic Systems may have actually been punished for their lack of interoperability when @Cerner recently won the $11 billion DoD Healthcare contract.  That is an example of the DoD making a conscious decision towards interoperability by voting with their wallet.  But what has ONC done for the improvement of record sharing for the average health consumer?  In a word, Nothing!  In fact, has admitted its near total failure in leadership when, after spending $30 billion, ONC had to admit that patients could not even get copies of their patient records contained in EHRs that were publically funded.
In fact, the ONC in April released a report to Congress on “health information blocking,” in which the agency noted that “current economic incentives and characteristics of both health care and health IT markets” discourage the sharing of health information (http://bit.ly/1QFEZUI).
For instance, vendors may charge up to $1 per outgoing EHR record and $5 per incoming record in addition to connection or interface fees, noted Peter Ashkenaz, an ONC spokesperson, in an email. Another challenge, Segal said, is finding a more efficient way to match patients with their records. Health Insurance Portability and Accountability Act (HIPAA) regulations prohibit the use of Social Security numbers or other national identification numbers, thus forcing health care organizations to match patients with records by cross-referencing a series of identifiers such as birth date, address, and driver’s license number.
            Brookings Fellow Niam Yaraghi, however, in a blog post following up on the senators' piece, calls their expectations for ONC unrealistic. HITECH, he says, was designed with a lack of insight into how the healthcare market functions; because of that, a gap persists between the program's goals and its strategies.
            "Billions of dollars were doomed to be wasted and have no tangible return from the very first day," Yaraghi says.
            What's more, he says, blaming HITECH's failures on a lack of interoperability and standards is "naïve." Instead, Yaraghi reiterates his previous call for more "market-driven economic incentives" and "self-regulated, industry-driven certification alliances" to move the needle.
            "By demanding ONC to spend taxpayers' money on designing standards and focusing on certification, we will only be doing a big favor for EHR vendors by picking up their R&D tab," he says.
            So after failing to help patients receive paper copies of their own patient records, ONC has a “new” plan to involve individuals and patients:
            National Coordinator for Health IT Karen DeSalvo, M.D., told reporters in a press conference that the federal strategy puts people at the center with HIT in a supporting role designed to facilitate and enable delivery system reform, scientific advances like precision medicine, as well as improvements in public health and preparedness.
The focus on individuals is a significant change from the initial draft of the plan which critics charged was too heavily focused on providers while giving short shrift to consumers. However, Gretchen Wyatt, senior strategy advisor in ONC’s Office of Policy, emphasized that with the final plan “persons are really where we’re trying to go with the information.”
            Leading health IT groups, including HIMSS, the American Health Information Management Association and the Sequoia Project, have offered the Senate HELP Committee their collective recommendations on how to proceed with its health IT work. In a letter posted Friday they call for reforms in meaningful use and list various suggestions for spurring interoperability. These include optimizing and levering existing standards rather than creating new ones and support for “high-value, impactful use cases” of health information exchange. Other recommendations: shift EHR certification to include interoperability requirements, lift the prohibition on creating a national patient identifier, and align electronic quality measures across reporting programs.
            Congress may be getting primed for HITECH 2.0 as reported on September 21, 2015:
Word around K Street is that Louisiana Sen. Bill Cassidy will introduce his bill to spur interoperability very soon, possibly this week. Multiple lobbyists said it could have come last week, but, of course, it didn’t. Cassidy said in July his bill would look similar to what the House did in its 21st Century Cures Act. 
                If @ONC_HealthIT is really serious about individuals receiving their health records and jump increasing interoperability, providers will only receive financial incentives after demonstrable transfer of THEIR  data to the patient (by paper, thumb drive, CD, or to a secure patient centric system).  Extra incentives can be based upon aggregation of data transferred to the patient from more than one connected system. 

 @ebukstel

Wednesday, September 9, 2015

Patients and Doctor’s on Social Media

FB Needle
There is a serious disconnect between, How Patients Are Using Social Media and Physician Review Websites (ie: Healthgrades.com, ZocDoc.com, Yelp.com, RateMDs.com). RateMDs.com has 2 million physician reviews but only 886 likes on Facebook
The 5686 US Hospitals as well as the vast majority of the 800,000 active doctors are severely underrepresented in social media and poorly presented in “old school” ratings sites.  The numbers of doctors and hospitals represented on Facebook and Twitter are a pathetic at less than 35%.  Even if a health professional has a social media presence, the actual patient engagement results are equally pathetic.  
Even though Social Media has a significant influence on a person’s choice of physicians, on August 20, 2015, Fortune Magazine reported that ZocDoc has a $1.8 billion valuation via a $130 million funding round.  Healthgrades drives revenue through advertising to its 30 million viewers per month.    In an April 2013 Price Waterhouse report, Peggy O’Kane National Committee for Quality Assurance, agrees, “Healthcare ratings are still in a formative stage.”
Physicians and hospitals will need to play catch-up if they want to have true patient engagement  using platforms preferred by patients.
Edward Bukstel
@ebukstel

Tuesday, March 17, 2015

How Did a Top Ten LinkedIn Influencer and an “Oprah” Blogger Lose an $18 Million Competition?

The founder of Diapers.com that was sold to Amazon for nearly $450 million decided to launch a contest for his new shopping membership website Jet.com.  The contest goal was to sign up as many email accounts as possible in order to win the Grand Prize of stock options valued at approximately $18 million.  Prizes for 2nd place through 10th place were worth approximately $1.8 million each.  Jet.com is backed by investors including Bain Capital Ventures, Goldman Sachs, and Google Ventures
The conventional wisdom was that the winner of the contest would have significant followings in social media including Facebook, LinkedIn, Twitter, Pinterest, etc…  In fact the 6th place winner owns social media marketing firms’ likeable.com, and likeablelocal.com.  In addition to social media firms, Port Washington, NY entrepreneur Dave Kerpen is also a LinkedIn super user with over 550,000 followers.  Kerpin stated that he also spent about $1000 on the competition,
The winner of the Jet.com competition is, Eric Martin, York, PA, a sales and support person for a Funeral Insurance company.  In addition to selling funeral insurance, Martin’s career trajectory has included stints as a car salesman and a Ron Paul leaning candidate for Congress.  Martin does not seem to have significant social networking savvy like the other top ten finalists, but he used an innovative approach to attract nearly 8000 email addresses for the Jet.com contest.
InsteaSocial Mediad of leveraging the clout of tens of thousands of social media followers Eric Martin noticed a trend in web savvy shoppers using reward and gift websites.  Sites such as GiftHulk and Swagbucks pay users rewards for information about their daily internet habits including shopping, search, and opinion polls.   Swagbucks claims to have paid over $60 million in rewards since 2008. Martin used about $18,000 raised from friends and family to pay users of reward websites to opt-in their emails for Jet.com
The second place winner was Kyle Taylor Founder of The Penny Hoarder website.  Taylor is also a featured financial blogger on Oprah.com.  The 5th place winner is Kevin Schlenker, Tampa, Fla a car stereo distributor who used LinkedIn to advertise Jet.com and received less than 300 views from his January 28, 2015 post.
Jet.com considers the contest successes having generated over 350,000 opt in email addresses.  The success of actively utilizing social media sites LinkedIn, Twitter, and Facebook is also soundly demonstrated in the contest.  The success of Eric Martin’s strategy also demonstrates that out of the box thinking and use of rewards websites deserves some consideration when launching and developing a consumer facing web service.
Edward Bukstel Twitter @ebukstel

Wednesday, March 11, 2015

Uber Hits Speed Bump

Uber Japan is shutting down after being cited as being illegal.  44 Cab companies in Philadelphia, PA are seeking an injunction against Uber.  New York City has lost nearly $500 million in Taxi cab medallion revenue as a result of Ubers success in the city.  Uber has been halted in Portland Or and Anchorage AK.
Ubers business model is essentially a 20% split on all revenues relating to moving passengers from point A to Point B.  Uber has clearly created a better “taxi” service.  But how long will the taxi industry keep its meter running?
Uber has clearly invested in Big Data and predictive analysis to enhance the service and customer experience.  A quick review of Uber’s patent filings demonstrates the deep knowledge that Uber has invested in enhancing service.
1
2
3
4
5
6
7
8
9
10
11
12

There is a focus on calculation of on demand pricing and an excellent method for splitting fares oinvolved in a ride sharing or “car pool” trip.
In addition to grass roots litigation and outright bans of the Uber service in cities around the world, Uber is facing harsh criticism over passenger safety.  There have been a string of sexual assaults by ride-share drivers in San Francisco, Chicago, Boston, Los Angeles and Washington, D.C.  The US Congress is now looking into Uber’s practices regarding background checks
 Uber has clearly made the riding experience better.  The company generated nearly $500 million in gross revenues (including driver receipts)in San Francisco alone.  Given the scale of these numbers it may not be long until Uber faces real competition.
@ebukstel

Friday, February 27, 2015

The Healthcare No One Cares About

The Healthcare No One Cares About

Digital Health and Mobile Patient Engagement Applications have made tremendous strides in the past 2 years. Vendors are quick to announce an agreement or partnership with Stanford, The Mayo Clinic, and Brigham Women’s Hospital and attract headlines in industry blogs, magazines, and journals. Investors become excited and the process continues.
The US Healthcare System is only as strong as its weakest link. Today, that link includes over 50 million Medicare and Medicaid beneficiaries that will not being using a Smart Watch and never used Google Glass. It is not tech sexy to issue a Press Release about solving problems in the trenches of Healthcare Delivery for at risk populations.
In addition to Medicare and Medicaid disbursements, it is estimated that nearly $500 billion worth of free care is provided annually by family and friends of elderly, disabled, and chronically ill patients. There is a significant amount of data that could be collected during home care of patients that could impact the overall quality and cost of care. The provision of Home Health services to patients is the fastest growing job title in the US Healthcare System.
There are nearly 1 million Personal Care Assistants (PCAs ) providing over 1 billion hours of care to Medicare and Medicaid Patients, annually. The care provided by PCAs has come under scrutiny at Federal and State levels due to the high level of fraud involved in this home health occupation. Ohio Governor John Kasich has introduced a budget that envisions a phase out of over 13,000 Medicaid providers over 4 years. The Centers for Medicare and Medicaid have submitted a 2016 budget that will trim fraud by over $400 billion over 10 home careyears.
As a group PCAs provide more hours of patient care and contact than all physicians in the US. While it may not make headlines, the impact that PCAs have on the health of elderly, disabled, and chronically ill patients can no longer be overlooked.

Thursday, February 19, 2015

Half a Trillion in Healthcare not Paid by Medicare or Medicaid

In 2009, about 42.1 million family caregivers in the United States provided care to an adult with limitations in daily activities at any given point in time. The estimated economic value of their unpaid contributions was approximately $450 billion.  Caregivers want to use connectivity tools to keep track of loved ones—data, connectivity, sharing—even from a distance.  So healthcare will be personal, but also easier for the people who love you.  This family and friend care is not paid by Medicare or Medicaid.
Interesting insights regarding the Uber Model and Healthcare

Tuesday, February 10, 2015

Healthcare Apps Everywhere

If you’re in Healthcare and you’re not working on an App or using an App you may be looked at as being from 1999. All types of entities are providing Apps to “someone,” and sometimes, to anyone without using the appropriate market demographics to identify if the app works!  This applies to all stakeholders, including:
  • Physician
  • Hospital
  • Insurance Company
  • Clinical Laboratory
  • Pharmacy
  • Home Health Company
  • Pharmaceutical Company
  • Health Information Technology Company
  • Healthcare IT Vendors
  • Patients / Consumer
The usual stake holders are listed above.  Sometimes even physicians and patients use the Apps and there questions concerning discernible real world benefits.  It’s too early for most applications to show real benefits and outcomes for the vast majority of apps and their respective stake holders, especially patients.
The number of downloads is one “metric” used by vendors, healthcare providers, and other entities to measure success.  Downloads say nothing about the “meaningful use” or success of a product offering or App.  The ubiquitous stethoscope app is just one example of the weirdness surrounding the “real” functionality of an app.   Three Million Doctors Download iPhone Stethoscope App is a link to a company that suggests a large number of downloads by “physicians.”  There are only, as of 2010, 850,085 practicing physicians in the United States.   There are many stethoscope apps in the Apple Store and the Android store.  The number of app downloads is not a function of actual use in the healthcare industry.
The download numbers are an example of a healthcare “App” industry that is looking at the wrong metrics for success in healthcare.    There is a more fundamental number which is not being factored into many business plans in cloud based medical application development focused on consumers.   There is a wrong assumption that is found in many venture capital and investment presentations made by App developers.  Healthcare application developers routinely assume there will always be a smartphone in the hands of an end user with the costliest diseases such as, Diabetes, COPD, Hypertension, and Cardiac Diagnoses.
Patients with the  costliest diagnoses are usually older and it cannot be assumed that this population has a smartphone or even knows what to do with a smartphone or iPhone.  Pew Research (chart below) conducted a survey in January 2014 which found results that should be strongly considered for elderly patients and their use of smartphones.  The Pew study found that smartphone market penetration for people aged 50-64 is approximately 49%, while smartphone use among people over 65 is only 19%.
10-smartphone-owners-in-2014
These numbers are staggering consider the massive venture and angel investment in technologies that are dependent on smartphone penetration in markets that are most likely to have the costliest diagnoses and complicated conditions.New mobile health vendors and astute investors should consider the basic facts about the real meaning in download numbers.  But, it is even more significant to know the market penetration of smartphones in the universe of users with the costliest diagnosis codes.
The healthcare industry, particularly vendors and investors that have App excitement needs to focus on the fundamental business demographics which are not based in number of downloads.  Furthermore, the patient focused medical App development vendors must acknowledge how there will be market penetration in demographic groups that do not have access to smartphones (iPhone and Android).

Tuesday, February 3, 2015

Hospital Data does NOT Equal Community Health

The Becker Hospital Report is a misleading "population health" study that incorrectly projects community health with hospital payment data.  About 15 tears ago I worked at HCIA.  HCIA found Albany Hospital was the worst in the country for cardiac care.  The following year Albany Hospital was one of the best in the US by changing admissions requirements.  Hospital data does not reflect the health of a community.  Below are the "healthiest cities" according to the Becker Report. 
1. Washington D.C. 
2. Minneapolis-St. Paul, Minn.
3. Charlotte, N.C.
4. Virginia Beach, Va.
5. Portland, Ore.
6. Boston
7. Chicago
8. Philadelphia
9. Grand Rapids, Wyo.
10. Atlanta

Uber to fire 100,000 drivers over next 10 years


Uber is developing a self driving car in a partnership with Carnegie Mellon University.   This development points to a long term strategy where there will be no need for drivers.  Over 100,000 Uber drivers could be fired over the next decade.  

Billions wasted by Big Data Healthcare Contractors in a Texas Sized Medicaid Fraud


Over the past 20 years, Texas has privatized computer systems and call centers for its Medicaid program to contractors, including IBM, Accenture (formerly Andersen), Electronic Data Systems, (currently HP), and Xerox.   Accenture’s contract alone was for $899 million.  In 2006, IBM received a $869 million contract in 2006.  In 2008 IBM’s servers crashed which compromised Medicaid fraud investigations.  The private contracts have been a disaster for residents of Texas that receive benefits.  Delays, misinformation, and denial of coverage are just the tip of the proverbial iceberg.
While many influential people are heralding the potential of Big Data in solutions across multiple industries including healthcare, lack of domain expertise and oversight will destroy any big data deployment.  Many of the bungled Texas Medicaid contracting disasters could have been prevented with competent checks and balances.
Surprisingly, after IBM’s server debacle in 2008 Texas paid the majority of IBM’s contract and transferred the contract to Capgemini and Xerox.  Xerox was fired by the Texas Health and Human Services Commission charging that Xerox paid hundreds of millions of dollars in rubber stamped Dental Claims.
Headlines are made across the country documenting prison sentences for Medicare and Medicaid providers and recipients that defraud the State and Federal healthcare programs.  Doctors, dentists, chiropractors, and home health administrators are found guilty of Medicare and Medicaid fraud on a daily basis.   Very rarely do you find contractors going to prison for fraudulent activities in the deployment and operation of State Medicaid contracts.
Existing technologies and data sets can keep tabs on contractor performance in Medicaid and Medicare contracts.  These systems can prevent fraud and increase the quality of care in Medicaid and Medicare services.
Texas attempted to rein in Medicaid fraud and recently hired a small technology firm, 21CT.  The no-bid contract worth $110 million was a project utilizing big data to visualize healthcare fraud.  The company utilized healthcare claims databases to identify potential Medicaid fraud.    Rampant fraud at the company hired to identify fraud has been alleged by Texas Health and Human Services and an FBI investigation is reportedly under way.
The data gathered by mobile health technologies including patient monitoring and sensors provide a means of increasing quality of care and identifying healthcare fraud.   Incremental inclusion of mobile health data sets into big data analysis will be a benefit to patients and prevent Texas sized healthcare frauds committed by vendors and contractors.

Saturday, January 17, 2015

mHealth or Global Economy, Boom or Bust?



$10 billion was invested by Venture Capital companies in a single quarter in 2014 including investments in mHealth and Digital Health applications.  At one level this may seem to be "irrational exuberance" as dramatically demonstrated in the internet bubble 15 years ago.  The internet bubble effected the Global Economy and considering the size of the $3 trillion US Healthcare Market, mHealth may be an interesting indicator for a digital economy as a whole.

Valuations in digital / social media entities are at all time highs.  Uber and Alibaba are easy examples.  Xiaomi the Apple "knock off artist" just became the most valuable start-up at $45 billion.  Considering China is Xiaomi's primary market, this valuation is astounding.  I thought China was going through recession (based upon media reports) compared to its relative meteoric growth over the past 2 decades.

Rock Health's Managing Director, Malay Gandhi, makes a thoughtful case against any potential "bubble" in the digital health space in a report by stating, "it’s an inherent dissatisfaction in healthcare driving digital health’s growth; 258 digital health companies each raised more than $2 million in 2014. According to Rock Health’s report, the top six categories for digital health funding last year (accounting for 44 percent of all digital health funding in 2014) were: Analytics and Big Data ($393M), Healthcare Consumer Engagement ($323M), Digital Medical Devices ($312M), Telemedicine ($285M), Personalized Medicine ($268M), Population Health Management ($225M)."

Rock Health also points out that during the internet or dot-com bubble that over $30 billion was raised in a single quarter in internet company investments.  This number is even more significant considering the realtive size of the US economy in 1999-2000 versus 2014.  Malay Gandhi's analysis seems solid as well by comparing the tech heavy NASDAQ versus the Dow Jones in 1999- 2000 versus today.  The stock index charts also support Gandhi's statements.

In 1987 the stock market crashed. In 1998 the global economy and the stock market crashed.  In 2000 the tech heavy NASDAQ crashed.  In 2008 the global economy and the US stock marked crashed. Comparison of the internet bubble of 2000 make today's NASDAQ and mHealth valuations appear conservative, especially considering the diversification of investments in today's market.

As a Vice President at Medical Manager Corporation (known today as WebMD), I remember thinking in March 2000, that maybe people will need to sell some stock to pay for some gains in the NASDAQ.  

U.S. venture capitalists invested $48.39 billion last year, the biggest total since 2000, according to new data from the National Venture Capital Association, PwC, and Thomson Reuters.

“Internet models today are fundamentally more sound than Internet models of 2000,” said Deven Parekh of Insight Venture Partners, a firm which has backed Chinese online giant Alibaba.com and message service Twitter.
The $48.39 billion, spread among 4,356 deals, compares to $29.96 billion in 2013, and $105.01 billion in 2000, the largest level since the association began keeping records.
Software deals accounted for 41 percent of all cash, the highest percentage since the report’s inception.

The troubling scenario found  in the stock index charts demonstrate a 1 year gain in GDP (2014 - 2015) of nearly $1.5 trillion in a single year.  This is a significant increase in GDP during a time frame when global oil prices have been cut in half and copper prices are at 2009 levels.  Like oil, copper is a significant indicator for industrial and construction activities,


There is a real pent up demand for restructuring in the US Healthcare System.  A significant amount of this change will occur as a result of innovation. New technology adoption and addressing healthcare (Medicare and Medicaid) fraud and abuse will be highlighted in 2015.  The future of digital health technologies look bright against potential global economic headwinds.  Unlike 2000, the "economic eggs" are diversified among multiple baskets.




FBI investigating $110 million Medicaid Fraud Contract under Rick Perry Administration








The FBI is investigating a $110 million Medicaid Fraud Detection contract awarded to 21CT of Austin, TX.  This is a case of the fox watching the hen house.

In this case a political appointee, the inspector general of the Texas Health and Human Services Commission, awarded a $110 million dollar no bid contract to a firm committed to detect fraud in medicaid services.  

Gregg Cox, director of the district attorney's Public Integrity Unit, said he expects to open a criminal inquiry following two formal complaints into the now-canceled Medicaid fraud detection contracts given to Austin technology firm 21CT by Jack Stick, who last week resigned as general counsel at the state Health and Human Services Commission amid allegations of favoritism.

http://www.texastribune.org/2014/12/18/perry-calls-probe-21ct-hhsc-contracts/

http://www.statesman.com/news/news/state-regional-govt-politics/sources-fbi-is-investigating-110m-21ct-medicaid-fr/njnxd/

School Lunch includes Breakfast and Dinner


School lunch includes breakfast and dinner.  Over 1 million children are receiving breakfast lunch and dinner at school.  Los Angeles is doubling the number of dinners served.

The nation's second largest school district is doubling the number of students served dinner, with an eye toward eventually offering it at every school. It's a growing trend: Nationwide, the number of students served dinner or an after-school snack soared to nearly 1 million last year.
"When kids are hungry, they don't pay attention," said Bennett Kayser, a member of the Los Angeles Unified School District board, which was announcing the expansion Thursday. "This is something that should have started years ago."
Thirteen states and the District of Columbia began offering students dinner as part of a pilot program expanded to all states after the 2010 passage of the Healthy, Hunger-Free Kids Act. Schools where at least half the students are low-income and qualify for free or reduced-price lunch are reimbursed for each supper by the U.S. Department of Agriculture, at a rate often significantly higher than the cost of the meal.

Dentist paid $3.35 million in restitution but no jail time for Medicaid Fraud in Washington State


Sea Mar Health dentist paid $3.35 million in restitution but no jail time for Medicaid Fraud in Washington State.

Sea Mar Health Centers to pay $3.35 million in Attorney General’s Office investigation of improper billing
OLYMPIA — Attorney General Bob Ferguson today announced that his office is recovering $3.35 million from Sea Mar Community Health Centers, stemming from allegations Sea Mar improperly billed Medicaid for thousands of dental appointments.
After a two-and-a-half-year investigation, the false claims unit of the Attorney General’s Medicaid Fraud Control Unit raised concerns that Sea Mar had overbilled Medicaid more than $3 million for dental services between 2010 and 2014.
The Attorney General’s Office alleged that fluoride treatments, which could have been performed by dental assistants as part of a patient’s regular six-month checkups, were instead billed as stand-alone appointments with a dentist or hygienist.
Fluoride treatments should be billed on a fee-for-service basis, usually between $13.25 (for 6-to-19-year-olds) and $23.41 (for younger children). Bills from Sea Mar instead were sent to Medicaid as “encounters,” indicating patients were seen by a dentist or hygienist, with a typical fee of $180. Medicaid billing rules dictate that in order to bill for an encounter fee, the dental service provided must require a dentist or dental hygienist to warrant the higher cost.
The false claims unit alleged that Sea Mar’s billing for these appointments also exceeded the number of dental exams allowed per patient under Medicaid, without any documentation of the findings of such exams or that the exams were actually performed.
“Without exception, providers who participate in our state’s Medicaid program must accurately bill for and document services provided,” Attorney General Bob Ferguson said. “I’m pleased my office was able to recover the excess taxpayer funds that went out the door so this money can go back into health care for those in need.”
The agreement also resolves a pending case filed by Sea Mar in federal district court. Sea Mar cooperated fully in the investigation.

Over $135 Million in Healthcare Fraud for The Week Ending January 16, 2015



Guilty plea for $32 million Medicare fraud
Felix Gonzalez, the owner of Miami-based home health care company AA Advanced Care Inc., pled guilty to leading a Medicare fraud scheme that netted $22 million of the $32 million in false claims that were submitted. The company provides home health and therapy services to Medicare beneficiaries, but was allegedly billing the Medicare program for expensive physical therapy and home healthcare service that were either not medically needed or not provided at all.
Gonzalez also admitted to negotiating and paying kickbacks and bribes to patient recruiters in exchange for patient referrals, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary services that could be billed.
Podiatrist plead guilty to $999,170 fraud
Dr. Lawrence Iken plead guilty to one count of healthcare fraud for submitting false claims for services that were submitted over an eight year period. Through his own company and acting as an independent contractor, Iken overbilled Medicare, Medicaid and private insurance companies for services that were never rendered. This includes billing for draining abscesses and hematomes when he only clipped patients’ toenails.
Dr. Iken agreed that over the time frame, he overbilled $999,170. He faces a maximum of 10 years in prison, personal fines up to $250,000 and a company fine of up to $500,000.
Orchestrators of $97 million Medicare scheme sentenced
The two owners of a Houston-area mental health clinic were sentenced to 148 months and 120 months respectively for orchestrating a $97 million Medicare fraud scheme. Mansour Sanjar and Cyrus Sajadi were found guilty of using their community mental health clinic from 2006 through 2011 to provide partial hospitalization program (PHP) services, which include outpatient treatment for severe mental illness, and billing for them, even if the beneficiaries did not qualify for the services. They also billed for services when residents were watching movies, coloring and playing games, which are not billable activities.
It was also discovered that the pair paid kickbacks to group home operators and patient recruiters for delivering ineligible patients.
“Doctors are not only bound by oath to serve the health of their patients, they are bound by duty to serve as gatekeepers for Medicare spending,” said Assistant Attorney General Caldwell.  “In this case, without the criminal participation of Drs. Sanjar and Sajadi, this fraud simply could not have happened.”
Clinic owner sentenced to 30 months
Ronnie Lorenzo Robinson, the former owner of Peaceful Alternative Resources, was sentenced to 30 months in prison for his role in a $3.4 million Medicaid fraud scheme. The company provided mental health and mentoring services from two offices in North Carolina. The company submitted fraudulent reimbursement claims for fake mental health services which were either provided by unlicensed, non-Medicaid approved individuals, if they were provided at all.
Michigan physician gets 15 months for $2.1 million in fraud
Dr. Paula Williamson has been sentenced to prison for 15 months for her role in a $2.1 million Medicare fraud scheme. Between August 2009 and October 2012, Williamson and others committed healthcare fraud by referring Medicare beneficiaries for home health services that were medically unnecessary or never provided. Williamson also falsified documents to support the fake claims.
Settlement reached in $1 million fraud case
Nason Medical and two of its doctors have reached a $1,021,778.26 settlement. It was alleged that the provider submitted claims to Medicare that should have been provided by physicians, but were actually provided by physician assistants, some tests were not medically indicated and some radiological services were handled by technicians that were not licensed.
“Being a health care provider in Federal healthcare programs such as Medicare and Medicaid is a privilege, not a right. When health care providers order medically unnecessary procedures such as CT scans and submit other improper claims just to boost profits, they threaten both the health of their patients and the financial integrity of the Medicare and Medicaid programs,” said Derrick Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (OIG).