A Cushing, Okla.-based chiropractor and business owner has been sentenced to 14 years in prison for his role in a scheme that billed Medicare, Tricare and Champva more than $30 million for orthotic braces, continuous glucose monitors and other durable medical equipment that beneficiaries didn’t want or need, according to an Oct. 9 news release from the Justice Department.
Mark Loftis and his co-conspirators concealed from Medicare who owned and managed the DME company Back Pain Home Supplies, doing business as EZ Medical Supply, and that unenrolled entities were billing claims through it. Dr. Loftis paid more than $1 million in illegal kickbacks, some routed through a shell marketing company, to marketers, purported telemedicine companies and a call center that persuaded elderly and disabled beneficiaries to share their personal information. The group also bought sham orders from telemedicine physicians and nurse practitioners who never examined, and often never spoke to, the beneficiaries.
Dr. Loftis and his co-conspirators submitted more than $30 million in false claims and were paid more than $8 million, often billing for several orthotic braces at once, including eight for a single beneficiary. A jury convicted him in July of conspiracy to commit health care fraud and wire fraud. Along with the prison term, he was ordered to pay more than $8 million in restitution and forfeit more than $560,000.
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