By: Lamb McErlane PC Health Law attorneys Vasilios J. Kalogredis, Esq. and Sonal Parekh, Esq.

On November 28, 2023, Aramingo Pharmacy, based in Philadelphia, pled guilty to Medicaid fraud involving over half a million dollars in fraudulent claims. A Grand Jury investigation determined that the pharmacy and its owner, Ahmed Bachir, billed health care providers, including Medicaid, for prescription medications that were never actually provided to patients. Aramingo used various tactics, including the following:

1. Billing for brand name medications, but dispensing the generic form.
2. Requesting physicians to prescribe specific unnecessary and expensive medications.
3. Asking physicians to change medications to more expensive replacements.
4. Refilling expensive medications and billing insurance companies for the refills without ever dispensing such medications or informing the patient of the refill.

In her announcement, Attorney General Henry emphasized the role of pharmacists in safeguarding public health and criticized Aramingo’s prioritization of profit over patient care. As restitution for its acts, Aramingo Pharmacy, through its owner, Bachir, will be required to pay $573,992 to the health insurance providers involved and $300,866 to the Pennsylvania Department of Human Services – Bureau of Program Integrity, totaling a payment of $874,858. Additionally, Bachir will have his pharmacist license suspended for a period of five years and will be precluded as a Medicaid provider during such time, while keeping the full payment.

As a prudent practice, patients obtaining medications from pharmacies should always double check the names of the medications provided and consult with their healthcare providers before changing medications. Patients should also regularly check their prescription drug Explanation of Benefits statement to ensure accurate information is provided.

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Vasilios (“Bill”) J. Kalogredis, Esq. has been advising physicians, dentists, and other healthcare professionals and their businesses as to contractual, regulatory and transactional matters for over 45 years. He is Chairman of Lamb McErlane PC’s Health Law Department. Bill can be reached by email at bkalogredis@lambmcerlane.com or by phone at 610-701-4402.

Sonal Parekh Esq., is an associate at Lamb McErlane PC who focuses on healthcare transactional matters and a broad range of healthcare regulatory-related issues on behalf of healthcare systems, physicians, dentists, and other healthcare providers, and is a pharmacist by education and training. Sonal can be reached by email at sparekh@lambmcerlane.com or by phone at 610-701-4416.

*This alert is for educational purposes only and is not intended to be legal advice. Should you require legal advice on this topic or have any questions or concerns, please contact Vasilios J. (Bill) Kalogredis, Esq. or Sonal Parekh, Esq.