The center of attention… Two executives from the telehealth company Done Global were arrested last week and charged with distributing stimulants as part of a $100M health care fraud. The DOJ said that Done helped doctors prescribe 40M+ stimulant pills (including ADHD meds like Adderall) to patients, often with “no legitimate medical purpose.” It’s thought to be the first time that the DOJ has charged anyone with illegal drug distribution through a digital health company.
Quick scripts: Prosecutors said Done ordered prescribers to keep initial patient consults under 30 minutes, refused to pay them for visits beyond initial consults, and compensated them based on the # of prescriptions they wrote. The DOJ said that this payment structure discouraged follow-up appointments.
Rx-ing: The DOJ said Done spent millions of $$ on deceptive ads to gain subscribers, and that execs didn’t stop even after learning that some members had died after overdosing.
Control: In 2022, Walmart and CVS stopped filling some scripts from Done and rival Cerebral following reports scrutinizing the telehealth cos’ prescription practices. Also that year, the DOJ and DEA started investigating Cerebral.
Shortages are a pill… Experts say a pandemic spike in prescriptions for ADHD meds and supply chain issues played a role in a two-year shortage of meds including Adderall. The shortage, which started in 2022, affected about one-tenth of ADHD patients in the US and contributed to a boom in the illegal market for Adderall. Supply appears to be normalizing, but CDC officials say that the Done indictment could affect up to 50K US patients. About 11% of children and 4% of adults in the US have been diagnosed with ADHD.
There are two sides to telehealth… Digital doc visits boomed during the pandemic, and it became easier to get scripts for stimulants like Adderall as the US relaxed certain rules (like: no longer requiring an in-person visit to get prescribed). The expanded accessibility has helped many patients receive necessary treatment, but some telehealth companies have been scrutinized over their prescription practices. The DEA last year said telehealth providers could continue prescribing controlled meds (like Adderall) through the end of this year.