Gregory Schreck served as vice president of DMERx, a platform that facilitated illegal kickback arrangements between durable medical equipment suppliers, pharmacies marketers and telemedicine providers, according to a news release from the Justice Department.
Mr. Schreck admitted to connecting these entities with physicians who, in exchange for bribes, signed medical orders without conducting examinations. In many cases, physicians authorized orders based only on brief phone calls with patients or no interaction at all.
The fraudulent orders falsely claimed that physicians had examined and treated beneficiaries, allowing DME suppliers and pharmacies to submit over $1 billion in false claims. Medicare and private insurers paid more than $360 million based on the fraudulent submissions.
Mr. Schreck has pleaded guilty to conspiracy to commit healthcare fraud and faces up to 10 years in prison. A sentencing date has not yet been scheduled. He was among several individuals named in the case, which was part of the Justice Department’s 2023 national healthcare fraud enforcement action.
