The Houston Chronicle has reported that a Houston podiatrist and his business partner have been charged with $45 million in healthcare fraud in relation to the billing of bioengineered skin substitutes Dr. David Jenson and Nestor Refael Romero Magallanes are also accused of trying to cover up the fraud after they became aware of a federal investigation into their business, Doctor’s Inc. According to the indictment by the Department of Justice (DOJ), the men were charged with 14 counts of healthcare fraud stemming from allegations which included applying skin substitutes to patients who did not have wounds, sometimes telling patients that the treatments were stem cells used to treat body pain or swelling. They also advertised the treatment as an energy booster and a solution to “repair anything that is damaged within the body.”
The DOJ stated that the men submitted false statements to Medicare describing wounds the patients didn’t have, and created follow-up reports purporting to show the wounds were healing. After the business was searched by federal agents, the men are accused of pressuring patients into writing statements that they had the wounds they were treated for. Additionally, the patients were told that the entire treatment was covered by Medicare and that they were not responsible for co-payments. From 2022 to 2024 the business billed over $90 million in claims to Medicare for bioengineered skin substitutes and were reimbursed for more than $45 million. Jenson and Magallanes allegedly spent the profits on cryptocurrency, expensive jewelry, and vehicles, as well as travel on private jets. According to the indictment, the business was warned about their billing procedures in February 2023 but continued the practice. They have both pleaded not guilty, according to court records, and their attorney says they will fight the charges.
Dr. Fife is a world renowned wound care physician dedicated to improving patient outcomes through quality driven care. Please visit my blog at CarolineFifeMD.com and my Youtube channel at https://www.youtube.com/c/carolinefifemd/videos
The opinions, comments, and content expressed or implied in my statements are solely my own and do not necessarily reflect the position or views of Intellicure or any of the boards on which I serve.
