The arrest of two executives at a telemedicine company that distributed ADHD medication to adults across the United States could mean people taking medication for the condition lose access to treatment.
The Centers for Disease Control and Prevention issued an official health advisory warning Thursday that prescription stimulants “may impede access to health care for people taking them, potentially increasing the risk of injury or overdose.”
Around the same time, the U.S. Department of Justice filed federal health care fraud indictments against two executives of Done Global, a digital health company that describes its services on its website as “making quality chronic psychiatric disease management more accessible and affordable for patients.”
The CDC advisory said it was “currently unknown” how the charges would affect patients.
“Patients who rely on prescription stimulant medications to treat ADHD and who use this service or similar subscription-based telehealth platforms may experience treatment disruptions and reduced access to care,” the advisory said. “Any disruption involving this major telehealth company could potentially affect 30,000 to 50,000 patients ages 18 and older across all 50 states.”
Lucia He, founder and CEO of Dan Global, was arrested Thursday in Los Angeles and charged with conspiracy to commit health care fraud and obstruction of justice in connection with a scheme to distribute Adderall over the Internet, according to a Department of Justice statement. The company’s clinical president, David Brody, was also arrested in San Rafael, California.
The Justice Department alleges that Ho and Brody made more than $100 million by arranging for the filling of more than 40 million prescriptions, targeting “drug seekers” and instructing prescribers to prescribe stimulants to unlicensed patients.
“As alleged, the defendants designed and executed a $100 million scheme to exploit the COVID-19 pandemic to defraud taxpayers and increase easy access to Adderall and other stimulants with no legitimate medical purpose,” Attorney General Merrick Garland said in a news release. “Anyone who seeks to profit from addiction by illegally distributing controlled substances over the internet should know that they cannot hide their crimes and that the Department of Justice will hold them accountable.”
Brody’s lawyer, Naomi Chan, said his client has pleaded not guilty to all charges. “Dr Brody has worked tirelessly to ensure that people with ADHD have access to medical care, despite facing widespread stigma and unprecedented challenges caused by a global pandemic.”
Attempts to contact He or the company were unsuccessful, and CNN has not been able to verify whether He has hired a lawyer, as the case file remains confidential.
The arrests mark the Department of Justice’s first criminal prosecution of a drug distribution scheme linked to telemedicine prescriptions through digital health companies, according to the department. If convicted, He and Brody face up to 20 years in prison.
A CDC study last year found that prescriptions for stimulants, which are often used to treat attention-deficit hyperactivity disorder, have skyrocketed during the pandemic, especially among adults. Between 2016 and 2020, the share of the population who received a prescription for stimulants remained relatively stable. But that figure has increased substantially in 2021, with prescription fills jumping by 10% or more across most age groups.
The CDC’s new recommendations note that the United States is experiencing prescription shortages of several stimulant medications commonly prescribed to treat ADHD, a brain disorder that makes it difficult to concentrate and control impulsive behavior. ADHD is estimated to affect about 4 percent of adults and 10 percent of children in the United States. About one-third of children diagnosed with ADHD maintain the diagnosis into adulthood.
“Patients who face barriers to treatment or access to prescription stimulants and seek medication outside of the regulated health care system may be at significantly increased risk of overdose due to the proliferation of counterfeit pills in the illicit drug market that may contain unexpected substances, including fentanyl,” according to the CDC advisory.
“Given the national drug overdose crisis and the threats associated with the illegal drug market, individuals who struggle to obtain prescription stimulants are strongly encouraged to avoid using medications obtained from sources other than licensed clinicians and licensed pharmacies,” the advisory states. “Health authorities and health care providers should support patients seeking treatment for ADHD by communicating the overdose risks associated with the current illegal drug market as well as providing overdose prevention education and mental health support.”
The CDC’s recommendations also warn that if left untreated, ADHD can be associated with social and emotional impairments and increased risk of drug and alcohol use disorders, motor vehicle accidents and other injuries, and suicide.
“As more and more health care needs are met through telehealth, we will not tolerate fraudulent schemes that recklessly exploit digital technology,” Christy Grimm, inspector general for the U.S. Department of Health and Human Services, said in a Justice Department statement. “We will continue to work with law enforcement to protect participants in federal health care programs, ensuring that requirements for the proper and lawful prescribing of stimulants and other drugs are always met and that those who violate them will be held accountable.”
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