Authorities: Psychiatrist sent more than 50,000 fraudulent Medicare, Medicaid nursing home claims

Share this article:
A Chicago psychiatrist is accused of submitting $190,000 in false claims to Medicare and Medicaid and receiving kickbacks for prescribing antipsychotics.

Michael J. Reinstein, M.D., also allegedly submitted at least 50,000 claims to Medicare and Medicaid, saying he provided “pharmacologic management” for patients at more than 30 area nursing homes and long-term care facilities, the Department of Justice said Thursday.

“This is the largest civil case alleging prescription medication fraud against an individual ever brought in Chicago,” said Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois

Clozapine, which is prescribed to treat schizophrenia, is under scrutiny in the case: The DOJ says that at one point Reinstein had 1,000 patients on Clozaril as part of an agreement with Novartis to promote the drug. After that agreement ended in 2003, IVAX Pharmaceuticals, Inc. began paying a $50,000 “consulting fee” to Reinstein in exchange for him prescribing generic clozapine, the lawsuit says. Officials say that the physician then “became the largest prescriber of generic clozapine in the country.”

Share this article:

More in News

Post-acute standardized assessment bill passes House

Post-acute standardized assessment bill passes House

A bill that would standardize data in post-acute settings moved closer to reality after a House of Representatives voice vote in its favor Tuesday. The House's approval of the Improving ...

ACA hasn't created more part-time workers, analysis says

Despite fears to the contrary, there's no evidence that the Affordable Care Act increased part-time work before 2014, according to a new analysis.

Also in the News for Sept. 18, 2014

Arkansas' charity protection statute could protect nursing home in lawsuit... Institute of Medicine releases end-of-life report ...Congressional roundtable group says Medicare telehealth rules need to be updated