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

Dignity Award Gold won by Archie Hendricks Sr. SNF

Dignity Award Gold won by Archie Hendricks Sr. ...

A skilled nursing facility that sits on a Native American reservation has taken Gold in the Dignity category for the third annual McKnight's Excellence in Technology Awards.

Therapeutic program reverses Alzheimer's memory loss, UCLA researcher says

An intensive therapy regimen involving medication, diet and behavioral changes successfully reversed Alzheimer's-related memory loss in a first-of-its-kind trial, according to findings out of the University of California, Los Angeles.

Employee cleared of sexual assault charges wins $1 million defamation suit against ...

A former assisted living worker in South Carolina has received a $1 million award after being falsely accused of trying to sexually assault a resident, according to local news sources.