A former Insys Therapeutics Regional Manager has pleaded guilty to conspiring to pay illegal kickbacks to doctors in exchange for prescribing the instant-release fentanyl drug Subsys. Karen Hill, who was hired by Insys in June 2012, admitted to conspiring to pay kickbacks to doctors, including Dr. Xiulu Ruan and Dr. John Patrick Couch, in exchange for their prescribing Subsys to their patients.
During her time as a sales representative, Hill taught other sales representatives how to entice doctors to prescribe Subsys. In one recorded conversation, she explained that the key to getting doctors to prescribe Subsys was not selling them on the drug itself, but rather finding out what motivated the doctor. Some of her doctors were motivated by money, chocolate, and spending time with her, according to Hill.
In August 2013, Hill was promoted to be the Insys Regional Director for a territory that covered Florida and Mobile, Alabama. In this role, she oversaw and facilitated the payment for speaking programs to certain doctors, including Dr. Ruan and Dr. Couch. These payments were made as an inducement, and in exchange for, these doctors continuing to prescribe Subsys to their patients.
Hill admitted that she conspired with others within Insys to pay these doctors illegal kickbacks in the form of speaking fees. The way the scheme worked was that doctors who were prescribing high volumes of Subsys, or those who had the ability to do so in short order, were signed up by Insys as ‘speakers.’ The doctors would put on short presentations about the drug and then would receive an honorarium ranging typically ranging from $1,600.00 to $3,000.00.
Hill’s plea is just one of several former Insys employees that have pleaded guilty to conspiring to pay illegal kickbacks to doctors. Dr. Ruan and Dr. Couch, who practiced in Mobile, Alabama, were convicted by a federal jury in Mobile of numerous charges related to their pain management practice, including receiving illegal kickbacks from Insys. During that trial, former Insys sales representative Natalie Perhacs testified against the doctors.
Hill is scheduled to be sentenced in the coming months. If convicted, she faces up to five years in prison. The case is a reminder of the ongoing efforts by law enforcement to hold accountable those who engage in illegal kickback schemes.
Key Facts
- State: Alabama
- Category: Drug Trafficking
- Source: DOJ Press Release â†â€â€
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