The founder and CEO and clinical president of telehealth company Done Health were arrested June 13, according to a Justice Department news release.
The CDC issued an alert June 13, warning healthcare providers the indictment could disrupt care for 30,000 to 50,000 people receiving medication through Done.
The Justice Department alleged Done, which provides stimulant medications such as Adderall, exploited telemedicine prescribing flexibility in place during the COVID-19 pandemic and used deceptive advertising to draw in customers. The company allegedly used a monthly subscription model and made money by increasing prices.
Done prescribed more than 40 million pills and made $100 million in revenue, according to the Justice Department. The federal government alleged company executives encouraged providers working for the service to prescribe stimulants to anyone, regardless of medical need, and implemented an “auto-refill” function to discourage patients from returning for follow-up visits. The company did not reimburse its providers for any follow-up care after initially prescribing medications, the Justice Department alleged.
The indictment comes as Adderall and other attention-deficit/hyperactivity disorder treatment drugs are still in shortage, the CDC said in its advisory. The agency urged public health professionals to help patients using Done find a legitimate prescriber for medically necessary medications.
Ruthia He, the CEO of Done, and David Brody, MD, the clinical president of the company, face a maximum of 20 years in prison if convicted of conspiracy to distribute controlled substances.