St. Mary’s County Physician Pays $507,500 to Settle False Claims Act Case Over Prescription Fraud

In a significant development for healthcare oversight in Southern Maryland, gynecologist Dr. Valinda R. Nwadike has agreed to pay $507,500 to settle federal allegations of False Claims Act violations. The settlement addresses accusations that Dr. Nwadike participated in a telemarketing scheme designed to defraud Medicare and TRICARE, the Department of Defense’s healthcare program.

U.S. Attorney Kelly O. Hayes announced the settlement in conjunction with Maureen Dixon, Special Agent in Charge for the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Allison Russo of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS).

The federal complaint, filed in April 2023, alleged that between November 2014 and January 2018, Dr. Nwadike created and signed thousands of fraudulent prescriptions for compounded medications and durable medical equipment, including knee braces. These prescriptions were ultimately paid for by TRICARE and Medicare, federal healthcare programs that serve millions of Americans.

According to federal investigators, Dr. Nwadike’s role in the scheme involved writing prescriptions after only brief phone calls with patients. Prosecutors contend she failed to physically examine the patients or review their medical histories before authorizing these prescriptions, a practice that falls well short of accepted medical standards and federal requirements.

The alleged fraud represents a significant breach of trust in the healthcare system. Medical professionals are expected to act as gatekeepers for prescription medications and medical equipment, ensuring that patients receive only medically necessary treatments. When this system is manipulated, it not only wastes taxpayer dollars but potentially puts patients at risk.

“When physicians write prescriptions for medically unnecessary drugs and equipment, they abuse our federal health care programs,” Hayes stated. “The U.S. Attorney’s Office continues to work with our partners at DCIS and HHS-OIG to hold fraudulent providers accountable. We’re committed to protecting taxpayer dollars using all available tools, including civil settlement.”

This case highlights the ongoing challenges facing federal healthcare programs, which have been frequent targets for fraud. Medicare and TRICARE serve vulnerable populations, including the elderly, disabled, and military families, making abuses of these systems particularly concerning to federal authorities.

Maureen Dixon of HHS-OIG emphasized the importance of civil enforcement in protecting Medicare’s integrity, stating, “This settlement demonstrates our commitment to ensuring that Medicare program dollars are only paid for services that are actually needed and appropriate for patients.”

DCIS representative Allison Russo underscored the real impact of such schemes: “Healthcare fraud is not a victimless crime. It directly harms the American taxpayer and undermines the efforts of honest healthcare providers who are dedicated to serving our military members and their families.”

This settlement comes amid increasing scrutiny of telehealth practices across the country. While telehealth has become an essential component of modern healthcare delivery, particularly following the COVID-19 pandemic, it has also created new opportunities for fraud. Federal authorities have intensified efforts to ensure that virtual care meets the same standards as in-person treatment.

The case was handled by Assistant U.S. Attorneys Matt Shea and Roann Nichols, with support from Investigator Ann Thiel. U.S. Attorney Hayes specifically acknowledged HHS-OIG and DCIS for their investigative work leading to this resolution.

The settlement represents just one example of the Maryland U.S. Attorney’s Office’s broader efforts to combat healthcare fraud. Federal authorities continue to encourage healthcare professionals and the public to report suspected fraud through resources available on their website.

For Dr. Nwadike and the Southern Maryland medical community, this case serves as a stark reminder of the serious consequences that can result from departures from proper medical practice, especially when they intersect with federal healthcare programs.