A Jackson, Miss.-based durable medical equipment owner was sentenced to 30 months in prison and ordered to repay $7.5 million for his role in a healthcare fraud scheme.
Jamie McCoy, 42, was sentenced after previously pleading to federal charges of healthcare fraud, making false statements related to healthcare matters, and offering and paying illegal kickbacks for referral, according to an Oct. 6 Justice Department news release.
Mr. McCoy contracted with marketing firms who placed ads on television and online that offered orthotic braces at no cost, according to the news release. The firms sent patient information to a telemedicine physician who signed an order form for equipment without evaluating the patient. The patient information and medical equipment orders were sold to durable medical equipment companies owned or operated by Mr. McCoy.
The Justice Department said Mr. McCoy admitted to paying 70-80 percent of his profits to one person who supplied information to a company he owned called AE Wellness.
AE Wellness submitted $6 million in fraudulent reimbursement claims to Medicaid and $67,955 to Tricare between September 2016 and August 2017, according to the release. Another of his companies, Patriot Medical Supply, billed Tricare $23,951
After AE Wellness was suspended in 2017 for paying kickbacks, new companies were created that concealed Mr. McCoy's role, according to the release. He continued to pay kickbacks for patient information and referrals. From June 2018 to March 2019, McCoy submitted $1.8 million in fraudulent claims to Medicare and $15,540 to Tricare on behalf of a company known as MC Medical.