Warren doctor gets jail in opioid fraud scheme

Dr. Jerrold Rosenberg, 63, prescribed opiod drug in return for kickbacks from pharmaceutical firm

By Ted Hayes
Posted 3/14/18

A Warren doctor was sentenced Friday to 51 months in federal prison for committing healthcare fraud and for conspiring to receive kickbacks in return for prescribing a powerful version of the …

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Warren doctor gets jail in opioid fraud scheme

Dr. Jerrold Rosenberg, 63, prescribed opiod drug in return for kickbacks from pharmaceutical firm

Posted

A Warren doctor was sentenced Friday to 51 months in federal prison for committing healthcare fraud and for conspiring to receive kickbacks in return for prescribing a powerful version of the synthetic opioid drug Fentanyl. 

Dr. Jerrold N. Rosenberg, 63, the operator of a now-defunct pain management practice in Providence, pleaded guilty last October to healthcare fraud and conspiracy to receive kickbacks for his prescribing of Subsys, a highly addictive opiod manufactured by Insys Therapeutics. The under-the-tongue spray was approved by the U.S. Food and Drug Administration in 2012 exclusively for “the management of breakthrough cancer pain in patients who are already receiving and who are already tolerant of opioid therapy for their underlying persistent cancer pain.” As a result, many insurance companies require a diagnosis of breakthrough cancer pain before approving coverage of the drug, which costs approximately $2,000 to over $16,000 for a 30-day supply.

 At the time of his guilty plea, Dr. Rosenberg admitted that between 2012 and 2015, he carried out a healthcare fraud scheme in which he made false representations to insurers, both private and government-funded, claiming patients met the insurance criteria of having breakthrough cancer pain when he knew that they did not, in order to secure approvals and payment for prescriptions of the drug Subsys. The healthcare fraud scheme resulted in losses of over $750,000 and in many cases, the cost of the drug was reimbursed, at least in part, by the Medicare program.

 Additionally, Dr. Rosenberg admitted that between 2012 and 2015 he conspired with Insys officials to receive kickbacks in excess of $188,000 from the manufacturer of the spray. Those kickbacks were recorded as "speaking fees." According to court documents, Rosenberg’s son was a sales representative for Insys Therapeutics from June to September 2013, and made substantial amounts in commissions as a result of the defendant’s prescribing Subsys to his patients.

At Friday’s sentencing hearing, three former patients of Dr. Rosenberg testified about the severe and debilitating effects they experienced from taking Subsys. Some witnesses testified to the doctor’s indifference to their complaints and pleas to be taken off Subsys.

Prosecutors recommended the court impose a sentence of 63 months incarceration. At sentencing, he was also ordered to pay restitution in the amount of $754,736.48 to the Medicare program.

 

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