Physician among those indicted in $8M fraud scheme 

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A federal jury has convicted a Kentucky physician, among other parties, for his role in a scheme to defraud Medicare and Kentucky Medicaid via Kentucky Addiction Centers, according to a March 26 news release from the Justice Department. 

What happened? 

  • José Alzadon, MD, Michael Bregenzer, Kentucky Addiction Centers’ former CEO, and Barbie Vanhoose, former billing manager, allegedly fraudulently billed over $8 million for services that were not rendered or upcoded from addiction treatment facilities in Winchester, Paducah, Paintsville and London, Ky.
  • Dr. Alzadon used his elderly father’s identity and DEA number to bypass insurance credentialing and to prescribe Suboxone.
  • All three were convicted of conspiracy to commit healthcare fraud, eight counts of healthcare fraud and conspiracy to distribute controlled substances. Dr. Alzadon and Ms. Vanhoose also convicted of aggravated identity theft.

What’s next?

  • Dr. Alzadon and Mr. Bregenzer’s sentencing date is scheduled for June 25. Ms. Vanhoose’s sentencing date is June 26. 

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