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Feds: Schneiders Made Majority of Money From Meds

April 29, 2010
  • Feds: Schneiders Made Majority of Money From Meds
Feds: Schneiders Made Majority of Money From Meds

By Cliff Judy (WICHITA, Kan.)

Prosecutors say more than $4 million of Medicaid funds paid for pain med prescriptions for patients at the Schneider Medical Clinic.  Testimony resumed Thursday morning in the trial of Dr. Stephen Schneider and his wife, Linda.

The couple is charged with overprescribing pain medications at their Haysville clinic, contributing to 21 patient deaths by overdose.  Federal prosecutors also say they can link another 47 overdose deaths to the clinic.

Federal investigators raided the clinic in 2005, and investigators spent more than two years analyzing seized documents.

On Thursday morning, prosecutors presented a database of insurance claims showing there were more than 10,000 patients at the Schneiders' clinic.  More than half of them received prescriptions for controlled substances, and more than 3,100 receiving pain meds were covered by Medicaid.

In all, insurance payments totalled more than $6 million for controlled substance prescriptions.  About two-thirds of that money came from Medicaid.  Medicare programs also covered many Schneider patients.

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"So is that government money that goes into Medicare?" prosecutor Tanya Treadway asked the inspector who reviewed documents from the clinic.

"No, ma'am," Perry Seaton answered.  "That's the people's money."

The Schneiders operated the clinic from 2002 until their arrest in 2007.

The Schneiders' trial is expected to last at least two months.

You can read Eyewitness News Reporter Cliff Judy's live blog from the courtroom to see Thursday's evidence as it happened. 

You can also follow Cliff on Twitter at 12Judy. Read below for more numbers presented in court by prosecutors.

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NUMBER OF PATIENTS AT THE SCHNEIDER MEDICAL CLINIC:

Total:  10,450

Patients who received prescriptions for controlled substances:  5,253

Patients covered by Medicaid who received prescriptions for pain meds:  3,131

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INSURANCE CLAIMS BY SCHNEIDER PATIENTS:

Total:  293,000

Claims for patients receiving prescriptions for controlled substances:  199,602 (69% of total)

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INSURANCE PAYMENTS FOR PRESCRIPTION PAIN MEDS (rounded down to nearest thousand dollars):

Total:  $6,062,000

Medicaid payments:  $4,059,000 (67% of total)

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INSURANCE PAYMENTS TO SCHNEIDER MEDICAL CLINIC FOR MEDICAL SERVICES:

Total:  $4,243,000

Top 5 Payors:

Blue Cross Blue Shield of Kansas:  $951,000

Preferred Health:  $772,000

Medicare, Part B (physician side of Medicare):  $707,000

Medicaid:  $659,000

FirstGuard (Medicaid-managed HMO plans):  $583,000

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