Texas medical director convicted in Tricare fraud scheme

Sekhar Rao, MD, was convicted by a federal jury for engaging in a scheme to defraud Tricare, the Justice Department said Aug. 30.

Dr. Rao, 51, the former medical director for outpatient toxicology testing facility Adar Group, authorized toxicology and genetic testing for Tricare beneficiaries without seeing, speaking to or treating them, the Justice Department said. He also did not incorporate test results into ongoing treatment.

Patients were persuaded to provide urine or saliva specimens in exchange for $50 gift cards, the Justice Department said. Some patients were unaware what they were being tested for.

Dr. Rao was paid for authorizing unnecessary and repetitive testing, the Justice Department said. He was convicted on two healthcare fraud counts and is set for sentencing on March 27.

He faces a maximum of 10 years in prison for each count.

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