Podiatrist Caught in Foot Bath Fraud Scheme

Regardless of the specific condition, when a doctor prescribes a treatment, patients are entitled to trust that the prescription is based on the latest medical knowledge. Laypeople usually are not able to detect when a doctor is giving them bad advice in order to pad their own wallet. A medical practitioner who has a financial stake in the sale of related pharmaceutical products might have an extra motivation to recommend unnecessary medications. Often, only an employee within the practice knows the truth, which is why whistleblowers are so important in stopping medical fraud. 

A recent case from Memphis involved a particularly egregious example of healthcare misconduct. Dr. Nathan Lucas, a 59-year-old podiatrist, was sentenced to four years in prison for his part in a scheme to defraud Medicare and TennCare. Along with his podiatry clinic, Lucas owned two pharmacies. According to court documents and trial evidence, Dr. Lucas regularly prescribed antibiotic and antifungal drugs, instructing patients to mix these medications into tubs of water for foot soaks. The concoctions included capsules, creams and powders—many of which were not intended to be dissolved in water, and some of which were not even water-soluble.

Dr. Lucas's prescription choices were driven by anticipated reimbursement amounts rather than medical necessity. His pharmacies submitted nearly $4 million in claims to Medicare and TennCare for these expensive foot bath medications. These claims were fraudulent, as the medications were not medically necessary and not eligible for reimbursement. Over the course of the scheme, Dr. Lucas's pharmacies were reimbursed more than $3 million.

The fraud not only involved substantial financial losses to federal and state healthcare programs, but also jeopardized patient care by prioritizing profit over medical necessity. Schemes like the one perpetrated by Dr. Lucas divert valuable resources from patients who genuinely need care and inflates the cost of healthcare services for everyone. The case against Dr. Lucas underscores the critical role of regulatory oversight and the enforcement of anti-fraud measures in maintaining the integrity of the healthcare system. However, even diligent regulators with substantial government resources cannot catch all of the medical practitioners who are seeking personal gain by cheating federal and state medical benefit systems. 

If you suspect that your employer is engaging in healthcare billing fraud or need guidance on compliance, calling Kardell Law Group should be your next step. We have extensive experience in whistleblower cases involving medical practices and other types of businesses.