John Barnes, owner of L5 Medical Holdings, was sentenced to 45 months in federal prison and ordered to pay nearly $4.9 million in restitution and forfeit $250,000 for healthcare fraud and illegal prescription drug conspiracies, according to a Department of Justice release.
What happened?
- Mr. Barnes pleaded guilty in July 2023 to conspiracy to commit healthcare fraud, unlawful distribution of Suboxone, and using others’ DEA registration numbers to prescribe controlled substances. L5 also pleaded guilty to conspiracy to distribute fentanyl, oxycodone, hydrocodone and morphine.
- Court documents said L5 clinics prioritized profits over patient care by limiting visits to 15 minutes, pressuring clinicians to see up to 30 patients a day, and ordering drug tests based on insurance reimbursement rather than medical need.
- The sentencing marked the final chapter of Operation Mountain Highlands, a federal investigation that led to convictions and prison terms for about half a dozen medical professionals and businesspeople tied to L5’s clinics.
- Two physicians and a nurse permanently surrendered their licenses, and Mr. Barnes and L5’s former COO, Jennifer Adams, agreed not to conduct business in the Western District of Virginia again. Other sentences included 40 months for former physician Duane Dixon, 36 months for Ms. Adams, 24 months for Charles Wilson Adams, 18 months for Wendell Randall, and a fine for nurse practitioner Debra Shaffer.
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