Physician Jailed for Unnecessary Diagnostic Tests, Office Visits and Prescriptions

By Kelly A. Briganti, Editorial Director, G2 Intelligence

A Michigan physician has been sentenced to 45 months in prison as part of what the government claims is a $5.7 million Medicare fraud scheme. The physician was charged with allegedly prescribing medically unnecessary controlled substances and then supporting those prescriptions with claims for diagnostic tests and office visits that were never actually performed. Last year, the physician pleaded guilty to a count of health care fraud and a count of structuring cash transactions to avoid bank reporting requirements. The Department of Justice reports that Laran Lerner admitted to structuring cash deposits to avoid triggering currency transaction reports and that his controlled substance prescriptions “were simply used to facilitate and conceal his scheme to steal millions of dollars from the Medicare program.”

The plea agreement indicates the unnecessary services, tests and prescriptions led to Medicare billing exceeding $5.7 million. The plea deal requires the physician also pay more than $2.7 million in restitution and permanently surrender his Drug Enforcement Administration controlled substance registration, agreeing not to seek reapplication for the license.

The Department of Justice press release announcing the sentencing attributes the investigation and prosecution of this case to the Medicare Fraud Strike Force, claiming that since 2007, the Strike Force’s operation in nine cities has resulted in 2,300 defendants being charged for billing Medicare more than $7 billion.