Health Law update by Lamb McErlane attorneys Vasilios J. Kalogredis, Esq. and Sonal Parekh, Esq.

On March 27, 2024, Mark Sorensen, the owner of a durable medical equipment (“DME”) company and pharmacy, Symed Inc. (“Symed”), was sentenced to spend 3.5 years in prison and pay $1.8 million for his role in a scheme to pay kickbacks to obtain patient information and bill Medicare and other federal health care programs for medically unnecessary DME. This sentencing followed Sorenson’s conviction by a federal jury in January 2023.

Between 2015 and 2018, under the guise of a sham contract, Sorensen paid kickbacks and bribes to marketers to obtain “patient leads,” information (e.g., names, contact information, health care details, etc.). Sorenson and his co-conspirators would mislead patients into agreeing to receive DME, such as back braces, that they did not want nor need. He and the others then fabricated documents, using Symed’s logo, with patient details, medical diagnoses, and reasons why certain DME was necessary. These documents were used to trick doctors into submitting the necessary paperwork to order the DME. On several occasions, patients received four to six braces as opposed to the one, which was medically unnecessary.

Along with his co-conspirators, Sorensen billed over $87 million in fraudulent claims to Medicare, Tricare, and the Office of Workers’ Compensation Programs, ultimately gaining approximately $24 million as a result.

This case serves as a stark reminder to all health care professionals to beware of documents faxed in for equipment and medication orders that were not discussed with the health care professionals ahead of time.

If you have any questions regarding the anti-kickback statute, compliance, or other health law matters,  contact Bill Kalogredis, Esq. or Sonal Parekh, Esq.

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*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.

Vasilios J. (Bill) 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.