A.G. Schneiderman Announces Settlement With Pharmacy That Billed Medicaid For 4,600 Prescriptions Written By Excluded Provider

Pharmacy To Pay $478K In Restitution And Damages 

Schneiderman: My Office Will Continue Working To Root Out Medicaid Fraud And Recover Unlawfully Claimed Funds

BUFFALO – Attorney General Eric T. Schneiderman announced today that his office has entered into a settlement agreement with Vascuscript, Inc., d/b/a Mobile Pharmacy Solutions, to resolve allegations that it billed Medicaid for prescriptions which were written by an excluded Medicaid Provider.

“When Medicaid payment is obtained for prescriptions ordered by an excluded Medicaid Provider, New York tax dollars are spent on services which are ineligible for such payment,” said Attorney General Schneiderman. “My office will continue working to root out Medicaid fraud and recover unlawfully claimed funds, so that Medicaid can continue providing critical services for those in need.”

The Attorney General’s investigation determined that from April 21, 2010, through January 25, 2013, Vascuscript, Inc. submitted and received payment on approximately 4,600 claims to Medicaid for prescriptions that were written by Dr. Mikhail Strutsovskiy. The Department of Health had previously excluded Dr. Strutsovskiy from the Medicaid program, rendering prescriptions written by him ineligible for Medicaid reimbursement.  Before filling a prescription, pharmacies are required under Medicaid billing rules to first ascertain whether the prescriber’s services are eligible for reimbursement.  Because Vascuscript did not do so, it filled and delivered the prescriptions written by Dr. Strutsovskiy that were not eligible for Medicaid reimbursement.   

As a result of the Attorney General’s settlement with Vascuscript, Inc, the pharmacy will pay New York State $442,000 plus $36,000 in damages pursuant to the New York False Claims Act.

The Attorney General’s Medicaid Fraud Control Unit (MFCU) investigation was conducted by Supervising Investigator James Zablonski, Special Investigator Scott Barnes, and Principal Auditor/Investigator Christopher Magin. The Regional Chief Auditor is Frank Zeffiro. The case was handled by Special Assistant Attorney General Laurie Frank. Gary Baldauf is the Director of the Buffalo Regional MFCU Office. The Medicaid Fraud Control Unit is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney.  The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

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