Maryland OB/GYN to Pay $507,500 to Settle Medicare and TRICARE Fraud Allegations
Baltimore, Md. — A Maryland gynecologist has agreed to pay more than half a million dollars to resolve federal allegations that she participated in a telemarketing scheme that defrauded Medicare and TRICARE by issuing thousands of fraudulent prescriptions for unnecessary medical products, prosecutors announced Thursday.
Dr. Valinda R. Nwadike, an obstetrician-gynecologist, agreed to pay $507,500 to settle claims that she violated the False Claims Act by signing thousands of prescriptions for compounded drugs and durable medical equipment between 2014 and 2018 without proper medical evaluation, according to the U.S. Attorney’s Office for the District of Maryland.
Federal officials alleged that Nwadike worked with telemarketing companies to approve prescriptions for knee braces and topical creams following only brief phone calls with patients—often without reviewing their medical histories or examining them in person. The prescriptions were then billed to Medicare and TRICARE, the federal health programs for seniors and military service members.
“When physicians write prescriptions for medically unnecessary drugs and equipment, they abuse our federal health care programs,” said U.S. Attorney Kelly O. Hayes. “Our office will continue working with federal partners to ensure that taxpayer dollars are protected and fraudulent providers are held accountable.”
The Justice Department said the scheme led Medicare and TRICARE to pay for thousands of unnecessary medical products, enriching telemarketers and supply companies that solicited patients nationwide.
“This settlement demonstrates our commitment to ensuring that Medicare dollars are only paid for services that are needed and appropriate,” said Maureen Dixon, Special Agent in Charge with the Health and Human Services Office of Inspector General (HHS-OIG).
Officials from the Defense Criminal Investigative Service (DCIS), which oversees fraud affecting military health programs, said such misconduct harms both taxpayers and legitimate medical professionals. “Healthcare fraud is not a victimless crime,” said Allison Russo, Special Agent in Charge of the DCIS Mid-Atlantic Field Office.
The civil settlement resolves allegations brought under the False Claims Act but does not constitute an admission of liability by Dr. Nwadike, according to the Justice Department.