Physician, office manager to pay $450K to resolve false claims, controlled substance violations

A physician and office manager in Jackson, Ky., agreed to pay $450,000 to resolve allegations the physician unlawfully prescribed controlled substances and they both defrauded healthcare by soliciting kickbacks. 

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Pablo Merced, MD, was the owner and operator of St. John Neumann’s Extended Hours Clinic, and his wife, Theresa Merced, worked as the practice’s office manager. From April 2016 to November 2021, the pair allegedly solicited kickbacks from a lab sales representative in exchange for Dr. Merced’s referrals of laboratory tests, according to a Sept. 27 news release from the Justice Department.

The Justice Department alleges a sales representative paid cash directly to the Merceds and to multiple laboratory specimen collectors who worked at the clinic. 

Additionally, Dr. Merced allegedly violated the Controlled Substances Act by writing invalid prescriptions — he pre-signed 94 blank prescriptions and permitted unauthorized individuals to complete and issue those prescriptions for controlled substances to patients in his absence.

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