Source: Office of United States Attorneys
JEFFERSON CITY, Mo. – A Columbia, Mo., physician pleaded guilty in federal court today to making false statements relating to a health care matter.
Jerry Joseph Bruggeman, M.D., 53, pleaded guilty before U.S. Chief Magistrate Judge Willie J. Epps, Jr. to one count of making false statements relating to a heath care matter.
In early 2020, Health and Human Services, Office of Inspector General, became aware of a report that a Medicare beneficiary had been invoiced for a medical service purportedly performed by Bruggeman, even though the patient indicated he had never heard of Bruggeman. Investigation determined that in January 2019, Bruggeman had ordered genetic testing for this patient, for whom a laboratory submitted 26 claims to Medicare.
Further investigation revealed that between January 2018 and December 2019, Bruggeman referred over 3,100 orders for cancer and pharmacological genetic testing and durable medical equipment such as orthotic braces. The orders referred by Bruggeman affected over 1,000 Medicare beneficiaries and resulted in over 8,700 claims being submitted to Medicare for payment. Genetic testing orders signed by Bruggeman had resulted in Medicare Part B paying a total of $1,055,303. Additionally, claims for durable medical equipment under Medicare Part B had resulted in $551,105 in Medicare payments. In total, Bruggeman’s orders for genetic testing and durable medical equipment caused Medicare Part B to pay a total of $1,606,408.
A federal agent interviewed numerous beneficiaries, all of whom indicated that they had no idea who Bruggeman was and had never sought his services as a physician. The interviewed patients reported that they received braces that they did not need, did not request, and did not know how to use. Many patients received multiple braces for different body parts. Investigators also obtained a select number of patient files, which reflected that each patient’s orders were supported by highly similar assessments and/or letters of medical necessity, all of which had Bruggeman’s signature on them. Applicable Medicare regulations required that a licensed practitioner sign the orders, and that the items ordered be medically reasonable and necessary for the treatment of the patient’s illness or injury.
Between approximately Jan. 31, 2018, and April 2019, Bruggeman received approximately $29,440 in compensation from a telehealth company for the orders he signed through an online portal. The company maintained an online portal that aggregated the personal information of Medicare beneficiaries who had been solicited by marketing companies. The company created medical assessments and orders for these beneficiaries, then hired medical professionals like Bruggeman to “review” and sign orders for cancer genetic testing, pharmacogenetic testing, and durable medical equipment. Bruggeman did not interact with the patients in any manner prior to signing the forms.
Under federal statutes, Bruggeman is subject to a sentence of up to five in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by Health and Human Services, Office of Inspector General.