Two Novus Health Services doctors were handed a combined 23 years in federal prison for orchestrating a massive $40 million hospice billing scam that bilked Medicare.
In May, a federal jury found Dr. Mark E. Gibbs and Dr. Laila Hirjee guilty of conspiracy to commit healthcare fraud, among other charges. Today, Chief U.S. District Judge Barbara M.G. Lynn sentenced Gibbs to 13 years in federal prison and $27,978,903 in restitution, while Hirjee was given 10 years and ordered to pay back $16,253,281.
The scheme involved the illegal admission of patients not suitable for hospice care and fraudulent claims for services. Novus CEO Bradley Harris, who pleaded guilty before trial, implicated his former employees in a testimonial that revealed how they allowed him to dispense controlled substances with little medical oversight.
Witnesses described Dr. Hirjee and Gibbs’ involvement in pre-signing blank C2 prescriptions for controlled substances like morphine, while Director of Operations Melanie Murphey confessed, “I was the doctor,” when using pre-signed prescription pads for medications. When Medicare suspended payments to Novus, Harris and others transferred patients and employees to another hospice company, continuing the fraudulent billing.
U.S. Attorney Chad Meacham commented on the leniency of the sentence: “These doctors allowed an accountant with no medical expertise to dispense controlled substances like candy, with little to no medical oversight.” FBI Dallas Special Agent in Charge Matthew DeSarno emphasized the importance of thorough investigations and encouraged the public to report healthcare fraud.
The Novus Health Services scandal is a stark reminder of the consequences when medical professionals violate their Hippocratic Oath for personal gain. Other defendants involved, including CEO Brad Harris and his wife Amy Harris, have also faced legal repercussions for their roles in the scheme.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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