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FBI, IRS launch Medicare fraud investigations

Former clinic doctor says unnecessary biopsies were done

As thousands of valley residents await lab test results that could signal their early deaths, the FBI and IRS have launched Medicare fraud investigations into the health care center that has put more than 40,000 people at risk of hepatitis and HIV infections.

Rep. Jon Porter, R-Nev., confirmed Thursday that the investigations focus on allegations the Endoscopy Center of Southern Nevada billed Medicare for visits of more than 30 minutes when doctors spent less than half that amount of time with a patient.

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  • "We are talking with the GAO (General Accounting Office) about the possibility of a report detailing just how large this problem is in the country," Porter said.

    Porter said he learned of the probes during a Feb. 29 briefing in Las Vegas with Dr. Lawrence Sands, chief health officer for the Southern Nevada Health District. Porter said Sands told him investigators found that the clinic engaged in the overbilling on a "substantial number" of occasions.

    Sands was unavailable for comment Thursday, as were investigators for the two federal agencies.

    News of the investigations came as a former doctor at the clinic run by Dr. Dipak Desai revealed to the Review-Journal that he and other physicians were ordered to perform unnecessary biopsies to run up patient charges and to bill for up to 40 minute "patient consults" while spending about 5 minutes with each patient.

    A biopsy is the removal of a sample of tissue from the body for examination under a microscope to assist in diagnosis.

    The former doctor at the Desai clinic said biopsies were performed during colonoscopies and upper gastroenterological examinations. He said they posed little risk and were just little "snips."

    But the head of emergency services at University Medical Center, Dr. Dale Carrison, said that while the procedures are generally safe, they are not without risk. The primary risk of a biopsy of a colon is perforation of the colon which can dramatically increase the chance of abdominal infection, he said.

    The primary risk of biopsies of the stomach, he said, is bleeding. "It does happen," Carrison said.

    Porter said that it might be necessary to introduce legislation that would make ambulatory care centers, also known as outpatient or same-day surgery centers, subject to stricter patient care regulations, similar to those that hospitals follow.

    "We want to determine whether additional legislation is necessary (for patient safety)," he said.

    The doctor, who worked at the Desai clinic from 1997-2000, alleged that at that time the unnecessary biopsies, coupled with the fabricated lengthy patient examinations, could add more than $300 to a bill.

    The physician, who asked for anonymity because he fears "retaliation" from Desai, said he left the clinic in 2000 because he "was so depressed."

    "It was so unethical," he said. "I couldn't live with myself."

    He said he didn't speak up at the time because he needed a job.

    Some time after he cut ties with Desai, the doctor was interviewed by the FBI, he said.

    Desai remains unavailable to the media.

    The former physician at Desai's 700 Shadow Lane facility said Desai literally ordered physicians to perform biopsies.

    "When I wouldn't do it, I would get reprimanded," the physician said. "Desai dictated everything there."

    The physician, a former Air Force officer who is retired and living in Summerlin, said he did not see the unsanitary conditions described by federal and state officials. Health professionals at the center were found to have reused syringes on infected patients and contaminated vials of medicine that were shared among patients.

    Six patients have tested positive for hepatitis C. Five of those were treated on Sept. 21; the other patient was treated on July 25.

    Health officials have sent letters to 40,000 of the clinic's patients, urging them to get tested for hepatitis C and B and HIV, the virus that causes AIDS. Hepatitis is a potentially deadly blood-borne disease that attacks the liver.

    The former doctor at the clinic said Desai continually stressed the need to make more money.

    "He would tell us to do two biopsies rather than one," he said. "It just destroyed me to do that when it wasn't necessary."

    The physician said doctors remained with Desai because "they had bills to pay."

    "There are still some good doctors with him," he said. "They just care about money too much."

    Contact reporter Paul Harasim at pharasim@reviewjournal.com or (702) 387-2908. Contact Stephens Washington Bureau chief Steve Tetreault at stetreault@stephensmedia.com or 202-783-1760



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    ATaleofGreed2 wrote on March 10, 2008 06:56 PM: The performance of the biopsy can result in additional profit for the endoscopy facility in two ways: (1) increase the time for the procedure and (2) if the procedure physician or facility is in a financial relationship with the pathology laboratory to which the pathology specimen is referred - the facility PROFITS for each biopsy sent to pathology for evaluation.

    Endoscopy center of Nevada may have been involved in a relationship with a pathology company in Nevada that engages in condominium laboratory, TC/PC or reverse TC/PC. It's easy enough to determine. The pathology laboratory would be complicit in the fraud.


    in medical field for 20 years wrote on March 07, 2008 10:38 PM: To: Incredulous
    I am not a doctor but I have been in the medical field long enough to realize that you are one of those wacky patients that probably have been fired by every single doctor you have seen and I also realize not all physicians are "MD's"


    SHAME ON YOU!! wrote on March 07, 2008 08:58 PM: Shame on you all! All of the doctors are going to leave town now! And it's all because of you!!! Then we will have no doctors!! You happy now?!?!?


    Incredulous wrote on March 07, 2008 08:13 PM: To "You're kidding right"

    From Wikipedia: "Physical medicine and rehabilitation, or physiatry, is a branch of medicine dealing with functional restoration of a person affected by physical disability. A physician who has completed training in this field is referred to as a physiatrist (fizz eye' a trist). residency." Spelled right. Right title. Are you an idiot or just too clever?

    I don't care about the $350,000 damage cap. No matter how may malpractice policies these 7 related clinics and 14 gastroenterologists had, there is no way the total coverage comes anywhere near $350,000 X 40,000. That is especially true given that many insurance policies deduct the insurance defense lawyers' fees and costs from the amount of coverage. Imagine what they will charge to xerox all the medical files for all 40,000 patients.

    The conduct of Desai and partners IS going to bite all of Nevada's MD's in the behind for many years to come because (1) voter outrage is going to propel the Legislature to pass legislation to heavily regulate physicians and surgery centers, 2) Jim Gibbons is unlikely to be reelected because of his close connections with these defendants, his veto of funds for more outpatient surgery center inspectors, his appointing two of the defendants to important medical related positions, and the miniscule $3,000 fine levied by the administration under Gibbons' control, and (3) any time a physician is sued, for anything, the jury pool is going to subconsciously remember all of the "unfortunate favoritism" the state showed the medical profession up to this point

    Also, the "threat" that doctors will leave is unrealistic, given that Nevada is unique among states in allowing the creation of an "asset protection trust" for the specific purpose of sheltering doctors' assets from tort judgments. I bet Desau has one.


    WOW! Love it!!! wrote on March 07, 2008 07:55 PM: WOW!! The Gastro docs finally got it!! LOL!! I've heard about being "taken down a peg or two" but this is great!! They've been kicked to the curb, run over, vilified in the press....talk about a dream come true. Now before anyone thinks that I'm hateful, of course I am praying for those who are affected....already got my letter! But I've had interaction with these guys and they are scum from a cesspool. I would love it when the other doctors would make fun of them cuz they thought they were so well liked. Unprofessional, YES....but at least my docs didn't lie.


    Make those docs suffer!!! wrote on March 07, 2008 07:43 PM: Maybe desai will be stripped of everything as I hope he will. I wish the same fate for Dr. Carroll--he loves to argue with his wife about travel miles over the phone on company time and is very nasty to her. Dr. Mason (would love to watch him sashay his girly walk in jail.. WOW! you go girlfriend...come on out da closet...you too Jeffie!!-hope Mason put away enough stash for the sex reassignment...he more feminine than my Mother!!) Dr. Carrera...hope the Porsche is paid for....T.R. just needs to get a crew cut and she'd make a perfect bull dyke...already has the figure. Dr Sharma, who tries to make everyone believe he's the epitome of professionalism when he's only a miseralble camel jockey. And all the other docs I've had the misfortune to be acquainted with...I hope your skin is crawling....I hope you feel like you are in a burning room with no exit and no one to put it out. Desai, Sharma, Sood....go back to India and bandage victims of bus crashes...jeez, there's one there every week. All the rest of you, take your tomb-stone medicine and go somewhere and ROT!! I wouldn't piss on any of you if you were on fire.


    wendy wrote on March 07, 2008 07:36 PM: Has everyone heard, 3 clinics in Reno were found to be using the same unsanitary practices. Another clinic in town, not associated with dr desai, was also cited here today. This is going to be found to be widespread, nationwide.


    You're kidding right? wrote on March 07, 2008 07:31 PM: Incredulous,

    Whoa, looks like an educator malpracticed on you too. Surely, you weren't purposely trying to sound ignorant. Hmmmm, but you found your voice when speaking the last sentence. Straight from the handbook of personal injury attorneys seeking a change in the law.

    You may want to check with your "physiatrist" also. No sane person would state "bite all of you MD's in the behind for many years to come". One must assume that although unstated, you think that the law will be overturned and the MD's will pay. Understand that if the cap is removed, if the insurers stop insuring, if the rates go up, that there will not be doctors to treat anyone. Translation, we the patients suffer in more ways than one. Whereas you have had difficulty finding a doctor that pleased you, you do not represent everyone.

    P.S. funny that you would critique the spelling and grammar of others ... duh.


    Incredulous wrote on March 07, 2008 06:53 PM: One poster, below, says: "I promise you that most physicians are God fearing human beings who truly care about their patients and would never intentionally hurt a patient. I think this massive witch hunt is very damaging to the community."

    Never intentionally hurt a patient is vastly different than never NEGLIGENTLY hurting a patient. My family's experience with physicians in Nevada is that they are inattentive to their cases, and most interested in running the maximum number of patients through their office each day.

    My first physician in Nevada (a physiatrist) malpracticed on me.

    My second physiatrist turned out to be a wack job known as an easy touch for an unnecessary prescription.

    My first gastroenterologist is from Endoscopy Center.

    My child's first pediatric endocrinologist malpracticed on her.

    My child's pediatric medical group proved to be so interested in running up unnecessary consults, tests and hospitalizations that our HMO sent me a letter telling me they were revoking our ability to use that medical group.

    My child's second pediatric endocrinologist was so uncommunicative that I ended that doctor's services.

    Our family's cumulative experience with physicians in Nevada is that 65% of those who have "cared for" us either malpracticed or ran up ridiculous charges.

    Yes, posters below, there is a witch hunt going on. It's a witch hunt propelled by the outrage of more than 40,000 patients and their families. The fact that Dr. Desai was an professor at UN Med School, head of its gastroenterology department, head of UMC and Valley's endocrinology departments, former head of Sunrise's gastroenterology department, and former member of Board of Medical Examiners is going to continue to bite all of you MD's in the behind for many years to come, BECAUSE YOU AGGRESSIVELY LOBBIED AGAINST PROPER REGULATION AND FAILED TO EFFECTIVELY SELF POLICE YOUR OWN PROFESSION!


    Incredulous wrote on March 07, 2008 06:36 PM: I am happy to see that the Review Journal was able to get the retired doctor in Summerlin to give them some detail about Dr. Desai's business practices which he observed. The Summerlin doctor was honorable enough to say that he never saw the unsanitary practices complained of now.

    The fact that this doctor is afraid to speak publicly, and the fact that none of the nurses or current physician staff blew the whistle show me that Dr. Desai, his partners and friends have a reputation in the medical community for engaging in a pattern and practice of intimidation, retribution and character assassination. In my experience most employees are not afraid to criticize their former employers. Thus, the Summerlin doctor's caution obviously has some factual basis.

    It will be interesting to see if that doctor is "nemesis" who earlier this week posted rational, detailed information about Dr. Desai's "money grubbing" views of competent colonoscopy practice.

    I have examined some of the other posts by writers who gave detail about the residences of Dr. Desai and his partners. The writing style is not the same as nemesis'. Nememis and the person posting about Dr. Desai's assets are not the same person.

    Equally important, all of the information posted about Dr. Desai and his partners' real estate assets are readily available from the Clark County Assessor's on line real estate tax records.

    I also note that the newspapers' blogs are starting to fill with blogs obviously written by doctors. Bad spelling, bad typing, big egos. The vast majority of them make excuses for the less than appealing conduct of many doctors in Nevada. The comments of "in medical field for 20 years" are a perfect example.


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