‘Goodie bag’ doctor sentenced to prison for fraud scheme

A federal judge has prescribed prison time for a former Huntington Valley doctor who authorities accused of distributing “goodie bags” containing prescription drugs as part of an insurance fraud scheme.

Andrew Berkowitz, 62, whose exact address was unavailable, was sentenced in U.S. District Court in Philadelphia to 20 years in a federal prison and five years of supervised relief after he pleaded guilty to 19 counts of health care fraud and 23 counts of distributing oxycodone outside the course of professional practice and without a legitimate medical purpose, charges for which he

was indicted in June 2019.

Berkowitz, who prosecutors alleged ran a prescription “pill mill” from his medical practice in Philadelphia under the name of A+ Pain Management, also must pay a $40,000 fine and nearly $4 million in restitution, according to court officials.

The sentence was imposed by U.S. District Court Judge Paul Diamond who ordered Berkowitz to forfeit fraud proceeds of approximately $3.4 million and four properties.

With the charges, federal authorities alleged Berkowitz fraudulently billed insurers for medically unnecessary physical therapy, acupuncture, chiropractic adjustments and prescription drugs, and for treatments never provided.

“Doctors who dare engage in healthcare fraud and drug diversion, two drivers of the opioid epidemic ravaging our communities, should heed this sentence as a warning that they will be held responsible, criminally and financially,”

Acting U.S. Attorney Jennifer Arbittier Williams said on Tuesday. “Our office will continue to root out healthcare fraud and drug diversion in the Eastern District of Pennsylvania in all its forms.”

Federal prosecutors alleged that regardless of their complaint, at every visit patients received a “goodie bag” which was a tote bag filled with prescription drugs for which Berkowitz submitted pharmacy claims through his company, Bucks Philadelphia Medical Care Group.

Prosecutors said the “goodie bags” typically included a combination of drugs, including topical analgesics such as Relyyt and/ or Lidocaine; muscle relaxers such as Chloroxazon and/or Cyclobenzaprine; anti-inflammatory drugs such as Celecoxib and Nalfon; and controlled substances such as Tramadol for pain; and/or Eszopiclone and Quazepam for insomnia and anxiety.

Berkowitz obtained payments from insurers of more than $4,000 for each bag by falsely asserting that the drugs were for the benefit of the patient when, in reality, Berkowitz was the real beneficiary,

prosecutors alleged.

As part of the fraud scheme, Berkowitz also prescribed oxycodone to pillseeking

patients in exchange for their tacit approval that he would submit excessive claims to the patients’ insurers

for the “goodie bags” and other medically unnecessary services, prosecutors alleged. From 2015 through

2018, Berkowitz obtained more than an estimated $4 million in fraudulent proceeds from his scheme.