Last Friday, John Oxendine, Georgia’s former Insurance Commissioner, received a prison sentence of three and a half years for conspiracy to commit healthcare fraud. Oxendine, 62, admitted to orchestrating a fraud scheme involving the misuse of lab testing via his insurance consultancy firm. The sentencing took place in a federal court after Oxendine pleaded guilty to the charges in March.
This illicit activity revolved around Oxendine’s business ordering unnecessary lab tests. He worked with Dr. Jeffery Gallups, an ear, nose, and throat specialist, to order the tests from a Texas-based lab, Next Health. The duo then submitted fraudulent insurance claims for these unnecessary tests as well as receiving a kickback from Next Health.
The punishment imposed on Oxendine reflects not only the damage he imposed on the healthcare industry but also exemplifies the consequences of healthcare fraud at a high level. The case serves as a reminder that no individual, regardless of their position, is exempt from legal repercussion when involved in such illicit activities.
In addition to his prison sentence, Oxendine will serve a subsequent 3 year term of supervised release, have to pay over $760,000 back to those he defrauded plus a $25,000 fine. No further statement has been made by Oxendine or his legal representatives about this recent development.
