Jamestown Doc Sentenced For Drug Company Kickback Scheme

JAMESTOWN, RI — A Rhode Island doctor was sentenced Friday to 51 months in federal prison for his role in a pharmaceutical kickback scheme. The U.S. Attorney's office said Dr. Jerrold N. Rosenberg, 63 of Warren, pleaded guilty earlier to healthcare fraud and conspiracy. Rosenberg prescribed Subsys, a highly addictive type of Fentanyl to his patients, and was indifferent to their complaints about side effects when they asked to be taken off the drug, which costs some $2,000 to $16,000 for a month's supply.

Insys, the pharmaceutical company that manufactures Subsys, paid him more than $188,000 in so-called "speaker fees," which the government said were kickbacks for prescribing Subsys. He admitted the "speaking fees he received from Insys were a significant motivating factor in his decision to prescribe Subsys," the U.S. Attorney's Office said.

The drug is supposed to be given only to cancer patients "for the management of breakthrough cancer pain" in people who already have a tolerance to opioid pain medications. But Rosenberg prescribed it for patients who did not meet the insurance criteria, and lied to insurers, including Medicare.

Medicare was billed for some drugs he prescribed, and the losses came to about $750,000, the U.S. Attorney's office said. At sentencing, Rosenberg also was ordered to pay Medicare back $754, 736.48.

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