A Kansas City man who owned and Independence medical clinic pleaded guilty in federal court Thursday to his role in a fraud scheme that involved veterans disability examinations and making false statements regarding his role in the physical examinations of commercial truck drivers.
David Biersmith, 80, waived his right to a grand jury and pleaded guilty to one count each of health care fraud and making false statements to a federal agency. Biersmith had been owner and president of Industrial Medical Center in Independence. While he had no medical license, his company provided drug and DNA tests and had contracts with various entities to provide medical services, drug testing and physical examinations.
In 2013, Biersmith signed a contract with Logistics Health to provide disability examinations for veterans to determine the extent of veterans' impairments and eligibility for benefits. According to court documents, when IMC's licensed physician left later that year, Biersmith directed former physician Wayne Williamson and another person to perform examinations. That was in violation with the Logistics' contract, which stated that exams had to be conducted by credentialed providers and examiners with clear and unrestricted licenses who were not excluded from Medicare and Medicaid programs.
Williamson was a consultant with IMC but had surrendered his medical license in 2010 after pleading guilty to health care fraud, illegally distributing prescription drugs and harassing a state investigator. He was sentenced then to three years in federal prison and permanently excluded from Medicare or Medicaid programs. Williamson pleaded guilty in January to health care fraud.
IMC falsely represented that a licensed physician had completed and signed the questionnaires and submitted the invoices to Logistics for 209 exams on 53 veterans.
Logistics contacted the Department of Veterans Affairs in April 2014 to report the fraud, and the claims from those exams had to be re-adjudicated. Some veterans had to be physically re-examined.
With the truck driver exams, Biersmith had signed an affidavit stating he only signed a few physicals and only before, during or after an exam had been performed by a chiropractor. In fact, Biersmith signed at least 65 such documents using the chiropractor's name, including instances when the chiropractor did not perform the exam.
Biersmith faces up to 15 years in federal prison without parole. He will be sentenced at a later date.