Texas physician sentenced in $54M fraud case: 5 things to know

Daniel Canchola, MD, a physician in Flower Mound, Texas, was sentenced to one month in prison and ordered to pay more than $34 million in restitution for his role in a Medicare fraud scheme.

Here are five things to know about the case, according to an Oct. 29 Justice Department news release:

1. In 2023, Dr. Canchola pleaded guilty to knowingly signing prescriptions for durable medical equipment and cancer genetic testing that would be used to submit fraudulent claims to Medicare. He did not see, speak to or treat the patients for whom he was prescribing treatment.

2. Between August 2018 and April 2019, Dr. Canchola received approximately $30 per order he signed for durable medical equipment and cancer genetic testing that were not legitimately prescribed, needed or used.

3. The fraudulent prescription orders during this time amounted to $466,000 in kickbacks.

4. The physician orders Dr. Canchola signed were worth more than $54 million in false and fraudulent claims to Medicare.

5. The Medicare beneficiaries used in the scheme were targeted by telemarketing campaigns and at health fairs, where they were encouraged to undergo cancer genetic testing and receive durable medical equipment regardless of medical necessity.

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