Pubdate: Wed, 04 Sep 2002
Source: Sun News (SC)
Copyright: 2002 Sun Publishing Co.
Contact:  http://web.thesunnews.com/
Details: http://www.mapinc.org/media/987
Author: Elaine Gaston

HEALTH CARE FRAUD ALLEGED

Seven Myrtle Beach physicians and an office worker charged in connection 
with illegally distributing OxyContin and other narcotics from a pain 
management clinic are facing additional charges involving health care fraud.

A federal grand jury has returned an amended, 93-count superseding 
indictment against D. Michael Woodward, 45; Michael Jackson, 55; Thomas 
Devlin, 60; Deborah Bordeaux, 50; Ricardo Alerre, 72; Deborah Sutherland, 
52; Venkata Pulivarthi, 42; and Windy Suggs, 37.

The new indictment says the defendants made patients undergo unnecessary 
tests so fraudulent claims could be submitted to Medicare and other health 
care plans. In some instances, tests were altered or created so claims 
could be filed, the indictment said.

In addition, more than $5 million was received as a result of the sale of 
controlled substances outside the usual course of medical practice and from 
the payments made by health care benefit programs, the indictment said.

The case is expected to go to trial early next year.

It was originally set for later this month, but the new charges mean 
attorneys will need more time to prepare, said Assistant U.S. Attorney 
William E. Day II of the Florence office.

"It's a complicated case," Day said. "It will take about a month to try the 
case."

If convicted, each suspect faces a minimum mandatory sentence of 20 years 
to life in prison.

The superseding indictment added health care fraud counts to the original 
indictment issued in June.

The original indictment included charges of conspiracy to distribute 
controlled substances, distribution of controlled substances and money 
laundering.

The indictment also said serious injury and death resulted from the 
distribution of OxyContin, Day said.

The illegal drug activity and health care fraud took place from June 1997 
through June 2001, the indictment said.

The drug and health care fraud charges stem from an investigation by the 
Drug Enforcement Administration's Office of Diversion Control involving the 
now closed Comprehensive Care & Pain Management Clinic, at 7710 N. Kings 
Highway in Myrtle Beach. Woodward was the owner of the clinic.

Early last year, the DEA received reports from local police and pharmacies 
of overprescribing of narcotics by doctors connected to the clinic. The 
clinic closed after the DEA issued sanctions against the doctors, 
suspending their certificates to prescribe narcotics.

Woodward remains in federal custody on $250,000 bond. Sutherland remains at 
large and the other defendants have been released on bail, Day said.
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