Florida Businessman Sentenced in $48 Million DME Scheme

Sarasota, FL (WorkersCompensation.com) – Florida businessman, Nagaindra Srivastav of Tampa, has been sentenced to 9 years in federal prison for his role in an international healthcare scheme involving more than $48 million in fraudulent payments from Medicare. Srivastav, age 58, pled guilty to conspiracy and kickback charges in October of last year.
Srivastav created a Florida-based company, B2B Apps Solutions. The company’s purpose was to offer an internet platform where individuals as well as healthcare businesses could purchase and sell physicians orders for durable medical equipment (DME) such as knee, ankle, and back braces. Using the B2B business, through a website he created, RepsHub, Srivastav received and paid for referrals of federal healthcare business.
RepsHub allowed companies and individuals to upload potential leads of DME patients, which were usually obtained through telemarketing campaigns that targeted patients with federal payers. In addition to paying for leads, Srivastav also operated a call center, which he used to offer and sell leads himself.
Srivastav purchased physicians orders through supposed telemedicine companies located offshore in the Philippines and Pakistan. The orders did not meet medical necessity, and Srivastav was often notified that the physician signing the order for the DME had not even made contact with the patient yet had signed the order or prescribed the DME. As a result of these fake orders, more than $48 million was billed out to Medicare.
In addition to paying out $48,150,692.49, Srivastav is set to serve 9 years in prison, followed by 3 years of supervised release.
“Srivastav knowingly sold fake doctors’ orders to conspirators around the United States,” said U.S. Attorney Ryan K. Buchanan. “These orders were used to cause massive losses to the Medicare program and to taxpayers. Health care and telemedicine fraud is a high priority for the Department and this office, and we will vigorously pursue those who exploit our health care system for personal gain.”
In a related case, one of Srivastav’s customers, Brian Tisdale, has been sentenced to three years and six months in prison, followed by three years of supervised release. Additionally, Tisdale has been ordered to pay out $4,675,093.80 in restitution. Tisdale owned Medihealth Medical Solutions, LLC located in Mississippi, which became enrolled with Medicare in 2017. Tisdale also owned Liberty Medical DME, LLC located in Georgia, which became enrolled in 2018. Tisdale paid $250.00 for each billable Medicare patient referral from Srivastav and his co-conspirators.
According to one report from the OIG, more than half of DME claims submitted to Medicare lack ordering and referring providers.

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