HARRISBURG, PA — A Philadelphia pharmacy chain has pleaded guilty to felony Medicaid fraud and theft charges and will pay more than $2 million in restitution after investigators uncovered a scheme involving unregulated HIV medications, Attorney General Dave Sunday announced.
Surnil Pharmacy, Inc., which operated Haussemann’s Pharmacy on West Girard Avenue, admitted in Philadelphia County Court to dispensing an estimated 100,000 HIV tablets obtained from non-legitimate suppliers. The company was ordered to repay $2.3 million to Medicare and Medicaid.
“The distribution of life-saving medications is appropriately strictly regulated. This company put profits over their patients and broke the law,” Sunday said. He praised the Office of Attorney General’s Medicaid Fraud Section and the U.S. Department of Health and Human Services Office of Inspector General for their joint investigation.
Agents found no evidence that patients were physically harmed by the unregulated drugs. Still, investigators said employees reported that bottles of medication appeared tampered with, describing them as “sticky” with labels seemingly removed.
As part of the plea resolution, owner and pharmacist Subhash Patel is barred from participating as a Medicaid or Medicare provider for at least five years, and his pharmacist license will be suspended during that period. Haussemann’s Pharmacy and several other locations owned by Patel — including West Girard Health Pharmacy, East Lehigh Health Pharmacy, Frankford Health Pharmacy, and 11th and Walnut Pharmacy — have since closed.
The case was prosecuted by the Attorney General’s Medicaid Fraud Control Section.
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