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STATE SUSPENDS MEDICAID PAYMENTS TO PB DOCTOR

By Ray King/OF THE COMMERCIAL STAFF
Thursday, June 25, 2009 9:13 AM CDT

The State of Arkansas has suspended Medicaid payments to a Pine Bluff doctor who is the subject of a federal investigation after unapproved intrauterine devices were found at his office last week.

Dr. Kelly Shrum of the Arkansas Center for Women at 1609 W. 40th Ave. was notified by the Arkansas Department of Human Services Division of Medical Services of the action in a certified letter June 19.

The letter said the “Medicaid Program Integrity Unit has received reliable evidence indicating you are involved in circumstances involving fraud or willful misrepresentation under the Medicaid program.”

“Based on the circumstances surrounding this case, the Division of Medical Services has referred this matter to the Arkansas Office of the Attorney General for investigation,” the letter said.

It also explained that Shrum has the right to submit written evidence for consideration by the division, but any further action will be postponed until the investigation is completed.

A second letter, also dated June 19, was sent to Shrum’s patients, informing them of the action, and telling them that if the doctor is unable to continue providing them with services without receiving Medicaid funds, “you may choose another treatment provider.”

On Tuesday, Jane W. Duke, U.S. Attorney for the Eastern District of Arkansas said unapproved IUDs were found at Shrum’s office after agents from the Food and Drug Administration Office of Criminal Investigation served a search warrant June 17.

An IUD is a device that prevents pregnancy.

Duke said the U.S. Attorney’s Office “has reason to believe that some of Dr. Shrum’s patients received a version of that product that was manufactured in Europe for distribution outside the United States. It is unknown whether that version is safe and/or effective.”

She said patients who may have received the foreign version of the IUD are being contacted by mail, and those who do not receive a letter can call the FDA at 913-384-7429.

Because of the continuing investigation, Duke said no further information would be released at this time.

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