Insys Therapeutics rep pleads guilty to case involving Physicians’ Pain Specialists of Alabama, will testify against physicians

Insys Therapeutics’ representative, Natalie Reed Perhacs, plead guilty to a case involving Physicians’ Pain Clinic of Alabama’s Xiulu Ruan, MD, and John Couch, MD, according to WKRG.com.

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Ms. Perhacs worked for the pharmaceutical company Insys Therapeutics, which makes Subsys, a pain relieving spray intended for cancer patients who did not respond well to standard pain medication.

 

Court documents reveal Drs. Ruan and Couch wrote 110 Subsys prescriptions in October 2013 alone, most of which were for non-cancer patients. The physicians collectively billed private insurance and Medicare $572,000. The suit claims Ms. Perhacs was aware most patients did not have cancer and were not qualified for the drug.

 

Ms. Perhacs admitted to facilitating a kick-back scheme between Insys and Drs. Ruan and Couch who were compensated hundreds of thousands of dollars. The suit also alleges Dr. Ruan recommended Ms. Perhacs to the pharmaceutical company for the job in 2013 even though he knew her and was romantically interested in her.

 

For her role in the scheme, Ms. Perhacs earned between $700,000 between April 2013 and May 2015 despite having a base pay of $40,000 annually.

 

The rep is among several others who will testify against the physicians. A nurse, nurse practitioner and a pharmacist who received kick-backs at the clinic’s on-site pharmacy will testify against Drs. Ruan and Couch. Drs. Ruan and Couch owned the clinic’s on-site pharmacy.

 

The physicians are scheduled to go on trial in July.

 

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