White Collar Crime Watch—Because not all criminals look like monsters.
White Collar Crime Watch recently learned of schemes that involve compounding pharmacies. We wanted to help our readers to understand what to watch for so that you can be sure to work with a compounding pharmacy that doesn’t engage in fraudulent behavior.
There are many good compounding pharmacies out there, but there are always going to be people who try to take advantage of the system or simply try to cut corners to save some time or save a few bucks.
So, what is a compounding pharmacy? Compounding pharmacies are pharmacies that specialize in creating unique medications for patients who don’t fit a standard patient profile. For instance, a patient may be allergic to certain types of medications, so they need a modified medication that they won’t react to.
However, regular pharmacies don’t carry anything they can use, so a compounding pharmacy will mix different ingredients to come up with something they can use. Compounding pharmacies provide a valuable service to many patients throughout our communities.
Types of Compounding Pharmacy Fraud Schemes
There are many different types of fraud schemes that take place in healthcare settings, so compounding pharmacies are not the only healthcare industry having these kinds of issues. Nevertheless, you should also watch out for fraudulent schemes of any kind to protect yourself from being victimized.
Here are some examples of compounding pharmacy fraud schemes:
- Billing schemes
- Compounded drug fraud
- Unlawful kickbacks
- Medicaid best price fraud
- Medicare Part D fraud
- Illegal drug switching
- Misuse of 340b drug discount program
- Clinical trial manipulations/Fraud against the Food and Drug Administration (FDA)
What to Do if You Suspect Compounding Pharmacy Fraud
If you believe that a compounding pharmacy is engaging in criminal or unethical behavior, you can report that behavior to law enforcement or to another government entity. The U.S. Securities & Exchange Commission will also take tips from whistleblowers who report illegal activity.
Don’t Be Complacent Lest You Become a Victim
Healthcare fraud hurts a lot of people: patients, the government, taxpayers, and others. It especially hurts the image of the healthcare industry. White Collar Crime Watch cares about eliminating white-collar crime, because this type of crime could destroy the world we live in.
White-collar crime should be stopped before it does irreversible damage. Check back in with us next week to learn more about how white-collar crime can negatively impact society.