Steven Baraban pleaded guilty to one count of healthcare fraud, a felony that has a prison sentence of up to 10 years. He was fined $250,000.
Prosecutors said Medicaid paid him for pain creams and antibiotics that patients never received. The guilty plea comes after Stark Pharmacy settled a federal healthcare fraud lawsuit for $9.5 million.
“[Mr.] Baraban knew, or should have known, that Medicaid was being billed by Stark Pharmacy for medications that it did not take appropriate steps to deliver,” TheStar reported. “Baraban and Stark Pharmacy financially benefited by billing, and being paid by, Medicaid for medications for which there was no attempt to deliver them to Medicaid beneficiaries.”
More articles on legal and regulatory issues:
Anthem accused of sending massive checks to patients to force providers in network
Former Mayo Clinic employee faces 10 felony charges for alleged theft
13 latest healthcare industry lawsuits, settlements
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.