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ATTORNEYS FOR INDICTED DOCTOR SLAM GOVERNMENT

By Ray King/OF THE COMMERCIAL STAFF
Friday, October 9, 2009 11:49 PM CDT

Attorneys for a former Pine Bluff doctor indicted by a federal grand jury Thursday claimed Friday that the government failed to investigate and consider the evidence and is “instead pursuing the best interests of a private corporation to the detriment of American citizens.”

Dr. Kelly Dean Shrum, 41, who operated the Arkansas Center for Women at 1609 W. 40th Ave., was charged with one count of misbranding in violation of the Food, Drug and Cosmetic Act, one count of health care fraud, and three counts of money laundering in the indictment released by the U.S. Attorney’s Office Thursday.

Shrum was accused of giving his patients unapproved versions of the Mirena intrauterine device manufactured by Bayer, then billing the Arkansas Medicaid program for the more expensive version of the device approved by the Food and Drug Administration.

Little Rock attorneys Eric Cassinelli Couch and Jack T. Lassiter of the Lassiter and Couch law firm, and Charles R. Hicks of Health Law Associates are representing Shrum.

The lawyers said in a statement sent to The Commercial that the IUDs in question were manufactured by Bayer and purchased at licensed Canadian pharmacies.

“Our research indicates this is not an uncommon practice and thousands of United States’ physicians, including obstetricians, orthopedists, oncologists, and others obtain this and other drugs and devices from these licensed Canadian pharmacies,” the statement said.

“The United States subsidiary of Bayer has a monopoly on the device sold in the United States and charges American citizens roughly twice what is charged in other countries for the same product,” the statement said. “We doubt that this information, or any other information we have provided the government was presented to the grand jury since the indictment process does not obligate the U.S. Attorney to make a balanced presentation.”

Attorneys for Shrum also said they were “disappointed in the government’s failure to consider a doctor’s discretion in treating his patients. We are likewise disappointed in the government’s failure to consider its own policies of allowing Americans the right to seek cheaper, identical medications from Canada and instead is pursuing the best interest of a private corporation to the detriment of American citizens. We would note that thousands of citizens, including doctors, routinely engage in this practice to legitimately reduce unnecessary health care costs that are greatly increased by pharmaceutical companies charging Americans the highest prices in the world for their medication.”

They also claimed that Shrum’s patients are not in danger and that he never risked their safety, “instead making a reasoned decision based on his best medical judgment.

“Although the government’s press release insists that the regulatory process exists solely to protect the public, in this instance there is no threat to public safety, and the only conceivable harm is to Bayer’s profits.

“As the government’s press release notes, these products are Bayer manufactured Mirena IUDs. The basis for the assertion that they were unapproved by the FDA is apparently that they were purchased at a lower price than what Bayer distributors sell them for in the United States and were packaged differently. It is unfortunate that the government is using our criminal justice system to line the pockets of a multinational, for profit corporation.”

Couch, Lassiter and Hicks also said statements by U.S. Attorney Jane Duke that concluded Dr. Shrum “engaged in a scheme to line his pocket” were an attempt to influence public perception, and violated not only his constitutional rights “but violates a prosecutor’s ethical duties to avoid comments that will heighten public condemnation and recklessly comment on the guilt or innocence of a citizen.

“This is not only offensive to Dr. Shrum but is offensive and disruptive to our system of justice and all American citizens who are subject to it, and is, in our view, a violation of the ethical rules that attorneys and particularly prosecutors are bound by,” the statement said.

Shrum sold his Pine Bluff property to Jefferson Regional Medical Center Development, Inc. on July 14 and was hired by Drew Memorial Hospital at Monticello where he was to open a practice Oct. 19.

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