Doctor Pleads Guilty for Participation in Telemedicine Conspiracy Over Genetic Testing
On September 28, 2022, the Department of Justice (DOJ) announced that Christopher B. Bjarke, MD, pled guilty to conspiring to accept kickbacks in connection with a fraudulent genetic testing scheme that targeted elderly Medicare beneficiaries.
According to the Plea Agreement and other court documents, Dr. Bjarke engaged in a conspiracy by placing orders for genetic testing for Medicare beneficiaries whom he was not treating, nor did he have a physician-patient relationship. Dr. Bjarke’s sole contact with the beneficiaries was when he connected with the patient for a telephone call, set up by a telemarketer. Once Dr. Bjarke ordered the genetic testing, the laboratories billed Medicare for the test while another company billed Medicare for the “telemedicine” phone call, sometimes for as much as tens of thousands of dollars.
Through the scheme and conspiracy, Dr. Bjarke’s orders resulted in more than $18.5 million in Medicare payments. For his participation, Dr. Bjarke himself earned $167,996.73 as payment from his co-conspirators, from December 2020 to September 2021. Dr. Bjarke admitted the payments were kickbacks because they were payments in return for ordering medically unnecessary genetic testing and other services for patients that he was not treating and with whom he had no physician-patient relationship.
“Health care fraud and kickback schemes are serious public health and safety problems,” said U.S. Attorney Vanessa R. Waldref. “They divert precious public funds away from treating patients, drive up the cost of health care services, and undermine trust in our health care system, often putting quality health care beyond the reach of those who need it the most. Telemarketing schemes that target and exploit the elderly are especially pernicious because they prey on those who are often most in need of a doctor’s independent judgment that is not tainted or biased by the doctor’s own personal financial interest.”
“Dr. Bjarke placed making money above the welfare of patients and preyed upon elderly and vulnerable members of the community,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle Field Office. “This conspiracy not only victimized taxpayers via Medicare, but also impacted the patients, who underwent unnecessary medical screenings, thereby affecting their peace of mind. Medicare ultimately paid over $18 million for medically unnecessary testing, a fact that should outrage every law-abiding taxpayer.”
Dr. Bjarke’s sentencing is set for January 10, 2023, at 1:30 PM in Spokane, Washington.
This case is the latest in a series of DOJ enforcement actions surrounding “purported telemedicine companies,” following a July 20, 2022 Special Fraud Alert. These cases indicate the government’s ongoing focus on investigating and prosecuting fraud and abuse related to telemedicine services, particularly during the COVID-19 pandemic as telemedicine gained popularity and acceptance. The Special Fraud Alert specifically mentioned fraud schemes under which “Telemedicine Companies arrange with Practitioners to order or prescribe medically unnecessary items and services for individuals (referred to here as “purported patients”) who are solicited and recruited by Telemedicine Companies.” Unfortunately, given the Special Fraud Alert, it’s likely that Dr. Bjarke will not be the last practitioner caught up in a scheme like this.