Former Kentucky Pharmacist Sentenced to Prison for Health Care Fraud

The US Attorney’s Office for the Eastern District of Kentucky announced the sentencing of a former pharmacist to prison for attempting to defraud Medicare and Medicaid by billing for medications that were never dispensed.

The Case

The pharmacist, Stephanie Collins, 57, of Corbin, Kentucky, was a registered pharmacist and the owner-operator of a retail pharmacy in her hometown. From 2014 through 2020, Stephanie’s Down Home Pharmacy sought reimbursement from Medicare and Kentucky Medicaid for medications and medical products that were purportedly dispensed to patients.

However, an investigation revealed that these medications and products were never dispensed. Collins used the pharmacy’s computer system to file false reimbursement claims for medications that patients never picked up or received. She also submitted claims to Kentucky Medicaid for expensive diabetic test strips, while providing patients with cheaper test strips and pocketing the difference. Prosecutors determined that Collins defrauded Medicare and state Medicaid out of over $730 000.

As part of her sentence, Collins has been ordered to pay $730 055 in restitution. She was sentenced to 20 months of prison time. Under federal law, Collins must serve at least 85% of her prison sentence (17 months). Collins was formally charged in June 2024, pleaded guilty, and was sentenced in late October 2024. In a press release announcing the charges, US Attorney Carlton Shier noted, “When government healthcare programs are fraudulently deprived of critical resources and powerful drugs are illegally prescribed, it creates real damage…Simply having a professional license cannot be a shield from the consequences of this type of criminal conduct.”

“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” added Attorney General Merrick B. Garland, in a statement.

References

Former Eastern Kentucky pharmacist sentenced for healthcare fraud. Press Release. US Attorney’s Office, Eastern District of Kentucky. Published October 23, 2024. Accessed November 4, 2024. https://www.justice.gov/usao-edky/pr/former-eastern-kentucky-pharamacist-sentenced-healthcare-fraud

US Attorney’s Office announces two indictments of healthcare fraud related charges. Press Release. US Attorney’s Office, Eastern District of Kentucky. Published June 28, 2024. Accessed Novemver 4, 2024. https://www.justice.gov/usao-edky/pr/us-attorneys-office-announces-two-indictments-healthcare-fraud-related-charges