HARRISBURG, PA — Pennsylvania Attorney General Dave Sunday announced criminal charges this week against a Philadelphia pharmacy accused of dispensing unregulated HIV medications while fraudulently billing Medicaid and Medicare for more than $2 million in reimbursements.
The investigation centers on Surnil Pharmacy, Inc., which operated under the name Haussemann’s Pharmacy at a location on West Girard Avenue. According to investigators, the pharmacy’s owner, Subhash Patel, allegedly bypassed federally mandated drug sourcing protocols, acquiring and distributing HIV medications from unauthorized suppliers. Those medications were then billed to government health programs as if they had come from approved wholesale distributors.
The Office of Attorney General’s Medicaid Fraud Control Section charged the corporation with three counts of Medicaid fraud, one count of theft by deception, and one count of violating the Controlled Substance, Drug, Device, and Cosmetics Act.
“This pharmacy cut corners to maximize profits while putting patients at risk and defrauding taxpayers who fund the Medicaid program,” said Attorney General Sunday. “Our thorough investigation revealed that patients who depended on these life-saving medications were, in reality, receiving diverted, or unregulated, drugs that the pharmacy obtained from unknown, unapproved sources.”
Although no physical harm to patients has been reported, officials noted that more than 100,000 tablets of HIV medications were dispensed by the pharmacy without proof of legitimate sourcing. Employees interviewed during the investigation claimed the medications often came in “sticky” bottles, suggesting previous labels had been removed—an indicator of drug diversion and adulteration.
The joint investigation, conducted by the Attorney General’s Office and the U.S. Department of Health and Human Services Office of Inspector General, confirmed that the HIV medications on the pharmacy’s shelves were not acquired through lawful channels.
In addition to Haussemann’s, several other pharmacies owned by Patel — including West Girard Health Pharmacy, East Lehigh Health Pharmacy, Frankford Health Pharmacy, and 11th and Walnut Pharmacy — have since ceased operations.
Authorities emphasized that the case remains under active prosecution by the Attorney General’s Medicaid Fraud Control Section. As with all criminal cases, the charges are allegations, and the defendant is presumed innocent until proven guilty in a court of law.
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