Montana physician gets prison time for drug kickback scheme

A former Montana physician who worked on the Blackfeet Indian Reservation was sentenced to three months in prison and two years of supervised release for his role in a drug kickback scheme, according to the U.S. Justice Department

Arnold Scott Devous, MD, of Billings, Mont., was an Indian Health Services physician. In September 2020, Dr. Devos pleaded guilty to using his position to prescribe a diabetes drug from a pharmacy in exchange for kickbacks.

Prosecutors claimed from December 2015 to June 2016, Dr. Devous prescribed Farxiga, a more expensive drug not on the Indian Health Service's formulary. Dr. Devous then solicited multiple pharmacies in Montana to fill expensive prescriptions of the drug in exchange for receiving a cut of the profits, according to prosecutors. 

One pharmacy paid Dr. Devous $45,540 over six months. Dr. Devous attempted to shield the kickbacks by sending money to his wife, prosecutors said. 

"Dr. Devous used his position and ability to exploit patients in the Blackfeet community. These kinds of kickback schemes erode the public’s trust in its healthcare providers at a time when we need that trust more than ever.  We will continue to prosecute these schemes to the full extent of the law,"acting U.S. Attorney Johnson said.

Dr. Devous also was ordered to pay a $10,000 fine.

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