In 2020, HHS and the Office of Inspector General became aware of a Medicare beneficiary who had been invoiced for a medical service purportedly performed by Dr. Bruggeman, despite the patient having never heard of him, according to a Feb. 20 news release by the Department of Justice. An investigation found that in January 2019, Dr. Bruggeman had ordered genetic testing for this patient, for whom a laboratory submitted 26 claims to Medicare.
Further investigation found that between January 2018 and December 2019, Dr. Bruggeman referred over 3,100 orders for cancer and pharmacological genetic testing and durable medical equipment. These orders affected over 1,000 Medicare beneficiaries and resulted in more than 8,700 claims being submitted to Medicare for reimbursement. The orders, referred by Dr. Bruggeman, resulted in more than $1.6 million in payments from Medicare Part B.
Interviews with multiple beneficiaries, all of whom were unaware who Dr. Bruggeman was, revealed that the patients received medical equipment that they did not need, request or know how to use. This sometimes included orthopedic braces for multiple body parts. Investigators obtained patient files that showed that each patient’s order was supported by similar assessments or letters of medical necessity, all signed by Dr. Bruggeman.
Dr. Bruggeman received approximately $29,440 in compensation from a telehealth company for the orders he signed through an online portal between Jan. 31, 2018, and April 2019. The portal, operated by the telehealth company, aggregated the personal information of Medicare beneficiaries who had been solicited by marketing companies. The company then created medical assessments and orders for these beneficiaries and hired physicians like Dr. Bruggeman to “review” and sign orders, despite having never interacted with the patients in any manner.
He was previously indicted on 13 counts of making false statements to Medicare and has pleaded guilty to one count. He is subject to a sentence of up to five years in federal prison without parole.
