Two More Blatant Health Scams: Where Are Indictments?
The Market Ticker - Commentary on The Capital Markets
Logging in or registering will improve your experience here
Main Navigation
Display list of topics
Sarah's Resources You Should See
Sarah's Blog Buy Sarah's Pictures
Full-Text Search & Archives
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.


The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be sent unmodified to lawmakers via print or electronic means or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media, to republish full articles, or for any commercial use (which includes any site where advertising is displayed.)

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

Considering sending spam? Read this first.

2018-02-22 07:00 by Karl Denninger
in Corruption , 410 references Ignore this thread
Two More Blatant Health Scams: Where Are Indictments?
[Comments enabled]

How blatant do you need to be in stealing billions before someone goes to prison?

Let's start with this one:

A Texas woman took a urine drug test after back surgery and was hit with a $17,850 lab bill, according to a Kaiser Health News report.

This was for a set of tests that her health insurer says are worth $100.92 -- but since she was out-of-network she was billed 176 times as much.

Did someone do 176 times as much work?  Did they do any additional work?  Was she told about this before the tests were run?

All answers are no.

How is this not felony grand theft and fraud?  Indeed this sort of crap is an everyday occurrence.

Next up, and at least as bad, is this:

Long considered one of the healthcare industry’s dirty secrets, the Medicare 340B program is under new scrutiny after a major study revealed that “hospitals that save money through 340B program discounts often don’t use those savings to improve care for low-income and underserved patients.” They are padding hospital profits while driving up healthcare costs.

Rather than using those discounts to provide care for low-income people they are instead diverting the drugs bought under that price to full-price patients and in fact absorbed physician private practices to facilitate this.

In other words, hospitals become eligible for 340B from their low-income patients, then expand to satellite facilities in nearby, affluent neighborhoods to make a huge profit on half-off drugs their rich patients’ pay for in full.

How does this not qualify as Racketeering?

These people stole drugs that were provided to them specifically for low-income people, diverting them to higher-paying people.  When that wasn't enough they started buying up private practices to increase the number of patients against whom they could execute the scheme!

C'mon folks, cut the crap.  This isn't "enterprise" or "innovation."

It's theft, fraud, and since it's undertaken with lots of people all conniving to do it it damn well ought to be considered to fit the profile for Racketeering and result in the forfeiture of all of these hospitals, all of these doctor practices and the imprisonment of everyone involved.

View with responses (opens new window)