Former Stark Pharmacy director pleads guilty to healthcare fraud

A former director and managing partner of Stark Pharmacy, based in Overland Park, Kan., pleaded guilty March 1 to billing Medicaid tens of thousands of dollars for medications that patients never received, according to The Kansas City Star.

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."

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