A look back at the week’s news and developments affecting whistleblowers.

“Compound King” and Wife Sentenced in $21 Million Health Care Fraud Scheme

A Houston pharmacist and his wife were sentenced for their roles in an approximately $21.8 million fraud scheme. George Tompkins, the self-proclaimed “Compound King”, was sentenced to 10 years in prison. Allegedly, Tompkins and others billed the Department of Labor for medically unnecessary compound gels and creams that were predicated on illegal kickback payments. To read the full story, click here.

Atlanta Hospital System to Pay $16 Million to Resolve False Claims Allegations

Piedmont Healthcare, Inc., an Atlanta-based hospital system, has agreed to pay $16 million to settle allegations that it violated the False Claims Act by billing Medicare and Medicaid for procedures at the more expensive inpatient level of care instead of the less costly outpatient or observation level of care. The lawsuit was initiated by a whistleblower, a former Piedmont physician. The whistleblower will receive approximately $2 million for his share of the recovery. To read the full story, click here.

3 Defendants Plead Guilty in $65 Million Health Care Fraud Scheme

Three former U.S. service members pleaded guilty in federal court, admitting their roles in a fraud scheme that bilked the military healthcare program, TRICARE, out of more than $65 million. The defendants illegally recruited TRICARE patients to receive extraordinarily expensive and unnecessary prescription compounded drugs – which cost TRICARE an average of more than $14,500 per medication per month. They induced the patients to sign up by offering monthly payments to participate in a bogus “medical evaluation”, when no medical evaluation was taking place. To read the full DOJ press release, click here.

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