KC Reporter

A Columbia, Missouri physician has admitted guilt in a federal court to making false statements related to healthcare. Jerry Joseph Bruggeman, M.D., aged 53, entered his plea before U.S. Chief Magistrate Judge Willie J. Epps, Jr., confessing to one count of false statements regarding a healthcare matter.

The case began in early 2020 when the Health and Human Services Office of Inspector General received a report about a Medicare beneficiary being billed for services allegedly performed by Bruggeman. The patient claimed no knowledge of Bruggeman's involvement. Investigations revealed that in January 2019, Bruggeman ordered genetic testing for this patient, leading to 26 claims submitted to Medicare by a laboratory.

Further scrutiny uncovered that from January 2018 to December 2019, Bruggeman referred over 3,100 orders for cancer and pharmacological genetic testing and durable medical equipment like orthotic braces. These referrals impacted more than 1,000 Medicare beneficiaries and resulted in over 8,700 claims submitted for payment. Genetic testing orders signed by Bruggeman led to Medicare Part B disbursing $1,055,303. Additionally, claims for durable medical equipment under Medicare Part B amounted to $551,105 in payments. Overall, Bruggeman’s orders prompted Medicare Part B payments totaling $1,606,408.

Federal agents interviewed numerous beneficiaries who reported no knowledge of or interaction with Bruggeman as their physician. Many received unnecessary braces they did not request or know how to use. Patient files showed similar assessments and letters of medical necessity bearing Bruggeman’s signature. According to applicable Medicare regulations, such orders must be signed by a licensed practitioner and deemed medically necessary.

Between January 31, 2018, and April 2019, Bruggeman earned approximately $29,440 from a telehealth company for signing orders through an online portal without patient interaction. This company aggregated personal information from solicited Medicare beneficiaries via marketing companies and created medical assessments and orders subsequently reviewed and signed by professionals like Bruggeman.

Bruggeman faces up to five years in federal prison without parole under federal statutes; however, the final sentence will be determined based on advisory guidelines after a presentence investigation by the United States Probation Office.

Supervisory Assistant U.S. Attorney Lauren E. Kummerer is prosecuting the case following an investigation conducted by Health and Human Services Office of Inspector General.