Telehealth company Cerebral has recently found itself in hot water, as it has agreed to pay a hefty fine of over $3.6 million for allegedly engaging in practices to increase prescriptions of controlled substances such as Adderall. The Department of Justice and Drug Enforcement Administration made this announcement on Monday, shedding light on the company’s tactics to boost patient retention and revenue through the misuse of telehealth flexibilities.
According to regulators, Cerebral took advantage of the relaxed telehealth prescribing rules during the COVID-19 pandemic to implement measures aimed at increasing prescriptions. These measures included tracking prescriptions for patients enrolled in medication management plans and prescribing stimulants for individuals with ADHD. However, these actions were allegedly not based on medical literature or clinical appropriateness for the patients.
The company even went as far as offering financial incentives to providers to meet prescribing metrics, and reportedly considered disciplinary actions for those who did not prescribe enough stimulants for ADHD patients. These deceptive practices led to patients being put at risk in exchange for profit, as stated by DEA Administrator Anne Milgram.
In addition to these unethical practices, regulators also uncovered thousands of duplicate patient accounts within Cerebral’s system, with at least one patient receiving multiple stimulant prescriptions from different providers. The company did take steps to rectify these issues, including terminating its former CEO and ceasing the prescription of controlled substances altogether.
Despite these remedial actions, Cerebral has had previous run-ins with federal regulators. Earlier this year, the company settled allegations with the Federal Trade Commission regarding the disclosure of personal health information for advertising purposes and misleading customers about cancellation policies.
As Cerebral navigates through these legal challenges, it serves as a cautionary tale for telehealth companies seeking to capitalize on the growing demand for virtual mental healthcare services. Transparency, ethical practices, and patient safety should always be at the forefront of any healthcare provider’s mission, even in the fast-paced world of telemedicine.
