This month, the abrupt closing of four Tennessee pain management clinics under investigation for state and federal health insurance fraud made headlines. Those clinics, formerly affiliated with PainMD and rebranded as Rinova, closed last week. Federal authorities alleged that PainMD and its parent company inflated profits by providing patients with unnecessary injections to be paid by federal health insurance programs. Authorities of the state of Tennessee initiated their own investigation, with concerns that the conduct of clinic personnel may violate state law.
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In the PainMD pain clinic investigations, not only were the companies and clinic administrators at risk for financial penalties and reputational harm in connection with potential fraud, but so were the health providers who worked at those clinics. Three PainMD nurses were indicted on federal charges in connection with procedures provided at the Tennessee clinics under investigation.