This report originally appeared in the December 2009 issue of DOTmed Business News
The office of the U.S. Attorney for the Eastern District of Arkansas has announced in conjunction with the U.S. Food and Drug Administration (FDA) that Kelly Dean Shrum, a doctor of osteopath medicine practicing in Pine Bluff, Arkansas, has been indicted on misbranding, health care fraud, and money laundering.
The case evolves from Shrum's allegedly using a version of an intrauterine device (IUD) which was not FDA approved for use and distribution in the United States. Federal agents searching Shrum's former office found several non-approved versions of the Bayer manufactured IUD, Mirena. Shrum is further alleged to have billed the Arkansas Medicaid program for a more expensive and FDA-approved version of Mirena when he was actually giving Medicaid beneficiaries the cheaper, non-FDA approved version.
"In our ongoing effort to combat fraud, waste and abuse in federal health care programs, we must put an end to schemes such as Dr. Shrum's, which serve no other purpose than to line the pocket of a physician at the expense of the very program designed to meet the health care needs of the indigent in our State," stated Jane W. Duke, United States Attorney for the Eastern District of Arkansas, in a press release. An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
