So. Cal Public Radio Series Spotlights $100 Million Fraud Allegation Involving Compounded Drugs

The issue of drug compounding in California workers’ compensation took center stage this week with the publication and broadcast of a 3-part series of reports by KPCC (Southern California Public Radio) detailing the Orange County District Attorney’s recent indictment of a network of compounding pharmacies, medical providers, and medical billers who were involved in an alleged fraud scheme involving mass-produced compounded prescription creams. According to prosecutors, the scheme resulted in an estimated $100 million in workers’ compensation overbillings, and multiple parties – many of whom may be familiar to you — stand accused of fraud, illegal kickback arrangements, as well as political corruption.

CWCI President Alex Swedlow was interviewed for the series and discussed the nature and scope of the drug compounding problem in California workers’ compensation, and Institute research was used to document the growing prevalence and cost of compounded drugs in the system.

To access the series, which includes this week’s KPCC articles by reporter Karen Foshay links to FBI tape recordings, transcripts and email communications from the medical billing company at the center of scandal, click the following link: http://www.scpr.org/news/2014/09/11/46622/the-price-of-pain-indictments-allege-a-massive-com/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+893KpccSouthernCaliforniaNews+(KPCC%3A+News).