According to the release, Dr. Shrum allegedly provided patients with a version of an intrauterine device that was not approved for use in the United States by the Food and Drug Administration. During the execution of a search warrant at Dr. Shrum’s office, federal officials found non-approved versions of the Bayer-manufactured IUD, Mirena. The indictment also alleges that Dr. Shrum billed the Arkansas Medicaid program for the more expensive, FDA-approved version of Mirena when he was, in fact, providing Medicaid beneficiaries with a significantly cheaper, non-FDA approved version of the drug, which is the basis for the healthcare fraud charge. Medicaid deposited reimbursements into Dr. Shrum’s account electronically.
Dr. Shrum also faces three charges of money laundering, which allege that Dr. Shrum engaged in several financial transactions in excess of $10,000 involving money withdrawn from the account into which Medicaid deposited its reimbursements to Dr. Shrum.
If convicted, Dr. Shrum faces a maximum penalty for misbranding of three years imprisonment and a $10,000 fine. The maximum statutory penalties for healthcare fraud and for each count of money laundering are 10 years imprisonment and a $250,000 fine, according to the release.
Read the DOJ’s release about the Arkansas physician indicted on healthcare fraud (pdf).
