Bone-Stim Podiatrist Lied, Pleads Guilty

Seven months ago, a Virginia podiatrist named Ilene Terrell, D.P.M., was indicted for manipulating patient medical records and then lying about it to a grand jury. The indictment also claims Terrell lied to Orthofix, Inc. auditors. On January 15, 2014, Terrell was convicted.

Terrell pleaded guilty to four counts of making a false declaration to a grand jury. She faces a maximum of five years in prison. Sentencing is scheduled for April 17, 2014.

Lied to Grand Jury

According to the U.S. Attorney’s Office in Massachusetts, Terrell lied to the grand jury about her role in falsifying patient medical records to induce Medicare to pay for claims for Orthofix bone growth stimulator medical devices that did not meet Medicare’s payment guidelines.

Falsified Patient Records

On numerous occasions, says the government, Terrell prescribed a stimulator for a patient where the claim would not have met Medicare’s guidelines. When this occurred, the Orthofix territory manager, Terrell, and an employee at Terrell’s direction often falsified the patient’s medical records, making it appear as though the stimulator was not prescribed until three months had elapsed without healing, when that was untrue and Medicare should not have paid the claim.

Fictitious Prescriptions

On some occasions, according to the prosecutors, Terrell prescribed a stimulator for a patient and the patient’s bone healed within the prohibited three-month window. When that occurred, Terrell, an Orthofix representative, and an employee at Terrell’s direction deleted references in chart notes that the patient was using the stimulator and was healing, and they created a new, fictitious note at the end of the 90-day period stating that the bone was still broken and that a stimulator would be ordered. Terrell also created fictitious prescriptions to support the bogus claims.

On May 22, 2012, Terrell testified before the grand jury and was asked several times if she was aware that patient records had been manipulated. Terrell lied to the grand jury, emphatically denying that she manipulated patient records or that she was even aware that anyone had done so. The government said Terrell lied about other matters as well, including her communications with an Orthofix representative about the government’s investigation. Terrell discussed the government’s investigation at length with the Orthofix representative and instructed him that “you and I have not talked.”

Threatened Orthofix Rep

She also threatened the Orthofix representative, stating: “If you guys take me out you are never going to live to hear the end of it. If I roll on this, I am serious, heads are going to roll, heads are absolutely gonna roll.” In the grand jury, Terrell was asked if she had recently spoken with the Orthofix representative. Terrell lied, stating that she only spoke with him briefly and that the sum total of the conversation was that the representative stated that he did not know what the investigation was about

“The Foot Doctor of Rappahannock”

Last June we reported that according to Terrell’s website, “The Foot Doctor of Rappahannock, Ltd.”, she is board certified in foot surgery by the American Board of Podiatric Surgery. She provides conservative as well as surgical management of foot and ankle ailments for children, teens, adults and seniors, including diabetic patients.

She has been practicing in the Fredericksburg area since 1986 and has maintained Board certification in foot surgery since 1995. Terrell maintains privileges at Mary Washington hospital and the Fredericksburg Ambulatory Surgery Center. She has served as chairman of the podiatry department at Mary Washington Hospital.

Terrell attended the Pennsylvania College of Podiatric Medicine and the Surgical Residency programs. “She is committed to providing the highest level of care, taking the time to explain your ailment and address your concerns. She believes that ongoing training and product knowledge assists her in her efforts to remain current with new trends in podiatric medicine and surgery, ” states the web site.

Orthofix is under new management.