Ilene Terrell, D.P.M. / Podiatry Management Online

A Virginia podiatrist has been indicted in the ongoing investigation of fraudulent bone growth stimulator payments.

Ilene Terrell, D.P.M., of Fredericksburg was charged on June 12, 2013 with manipulating patient medical records and then lying about it to a grand jury. The indictment also claims Terrell lied to Orthofix, Inc. auditors.

Terrell allegedly prescribed an Orthofix stimulator device on numerous occasions for patients 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 manipulated patient medical records, making it appear as though the stimulator was not prescribed until three months had elapsed without healing, when in fact that was not true and Medicare should not have paid the claim.

On some occasions, Terrell allegedly 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.

According to the complaint filed by Carmen Ortiz, the U.S. Attorney in Boston, on May 22, 2012, Terrell testified before the grand jury. She 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. Terrell lied about other matters as well, including her communications with an Orthofix representative about the government’s investigation and her role in obstructing an audit performed by Orthofix when the company requested that she provide medical records related to claims for bone growth stimulators.

The Foot Doctor of Rappahannock

According to her practice web site, “The Foot Doctor of Rappahannock, Ltd.”, Terrell 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.

If convicted, Terrell faces a statutory maximum penalty of five years in prison, to be followed by three years of supervised release and a $250, 000 fine on each count.

The details contained in the indictment are allegations. The U.S. Attorney said Terrell is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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10 Comments

  1. You have incorrectly listed Dr. Terrell as an MD.
    This is clearly incorrect. The correct degree is DPM.

  2. Surprising that Orthofix is still engaging in these fraudulent practices after their Company was fined 44 million dollars last year for this very thing.

    1. Thanks for the comment Ms. Heinmann. These activities took place before the fine was levied. The physician and former Orthofix employee were also accused of lying to Orthofix auditors.

  3. It’s amazing that the local newspaper in that doctors area has yet to pick up on this story. Fraud needs to be exposed at every level no matter how small.

  4. I hope Dr Terrell, is found NOT GUILTY, because allegations are NOT facts. Indicting her without a code of law, whether state or federal, maybe illegal. I suspect somebody doesn’t like her, or has a grudge against her. She does perform GOOD on my Feet!!!

  5. I suspect also that someone doesn’t like Dr. Terrell!! She just performed corrective toe surgery for me that another podiatrist botched!!

  6. Orthofix Inc. on June 7 pleaded guilty to a federal felony count of obstructing a federal audit and agreed to pay nearly $42 million in criminal fines and civil penalties for illegal promotion of its bone-growth stimulators (United States of America v. Orthofix, Inc., No. 1:12-cr-10169, United States of America, ex rel. Jeffrey Bierman v. Orthofix International, N.V., et al., No. 1:05-cv-10557, D. Mass.). In a criminal information filed June 7 in the U.S. District Court for the District of Massachusetts, the U.S. Attorney’s Office alleged that Orthofix obstructed a federal audit by manipulating certificates of medical necessity that doctors are required to sign by Medicare. The government alleged that the manipulation took place by Orthofix sales representatives filling out the forms, forging physicians’ signatures or filling out or coaching physicians’ staff to list nine months as the time the devices are needed without regard to a physician’s medical judgment.
    –Keep this in mind. A busy physician who has no material gain from forging records was likely set up by this company.

  7. First, did anyone notice that the doctor was not charged with fraud but with a process crime. In other words, it was the best the government could get. She also has young children and maybe she didnt want to risk not being able to raise them. Also, the government acknowledges that there was no personal gain for the doctor. So, did I miss something? Where’s the motive? How come the reps and any other employees were not charged???

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