Dr. Salomon Melgen’s debt to patients, insurers swells to $52.9 million

April 07--WEST PALM BEACH -- Nearly six weeks after Dr. Salomon Melgen began serving a 17-year sentence for treating scores of patients for non-existent eye ailments, a federal judge this week added $10 million to the once-respected Palm Beach County physician's legal tab.

Instead of paying $42.5 million in restitution to his former patients and Medicare and other insurers, U.S. District Judge Kenneth Marra upped the amount to $52.9 million.

He did so after federal prosecutors said that since Melgen was sentenced in February they identified additional insurers and former patients who paid Melgen for eye treatments that were unnecessary.

Melgen's attorneys didn't object to the additional amount that includes $913,400 to Blue Cross Blue Shield of Florida, $756,000 to Humana Insurance and an additional $3.6 million to Medicare. The amount also includes payments of up to $16,500 to nearly 100 patients Melgen treated at clinics in West Palm Beach, Wellington, Delray Beach and Port St. Lucie.

Defense attorneys Matthew Menchel and Kirk Ogrosky didn't object because they are appealing Melgen's conviction on 67 charges of health-care fraud and his sentence. While insisting no fraud was committed, they further claim that prosecutors grossly inflated how much money was paid out for unnecessary treatment.

While many of his patients didn't have macular degeneration, as Melgen claimed, their eyesight improved as a result of the treatment they received, the defense argued.

While prosecutors contend Melgen submitted $136 million in fraudulent bills, his attorneys put the amount at $64,000.

The bigger question is whether Melgen can repay the money. In court hearings, prosecutors said he has either spent the money or put it in irrevocable trusts, making it off-limits.

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