Owner of closed drug clinics is under indictment in Vermont for health care fraud, other offenses

MANCHESTER, NH – The closure of six drug clinics in two states follows the indictment in April of its owner on federal charges in Vermont.

Dr. Adnan S. Khan, 48, of Grantham owned New England Medicine and Counseling Associates (NEMCA) with locations in Grantham, Manchester, Newport and Rochester, and two others in Rutland and Colchester,Vermont.

Khan is charged with one count of conspiracy to commit health care fraud, 12 counts of illegal distribution of a controlled substance, and two counts of health care fraud. If convicted, he faces a maximum penalty of 20 years in prison on the illegal distribution counts and a maximum penalty of 10 years in prison on each of the health care fraud counts.

Earlier this week, the New Hampshire Department of Health and Human Services issued a news release encouraging patients of the clinics with prescriptions for controlled medications to find other providers.

DHHS also said emergency rooms may see an increase in patients experiencing withdrawal symptoms or who may be requesting buprenorphine, a medication for the treatment of opioid use disorder, until they can find another medical provider.

According to court documents on file in U.S. District Court of Vermont, Khan used his clinics to carry out his alleged illegal prescribing and health care fraud conspiracies,

Through NEMCA, Khan allegedly required patients to pay cash in exchange for their prescriptions, despite many of them having insurance through Vermont Medicare and Medicaid. Khan allegedly prescribed the drugs knowing that at least some of his patients were abusing and diverting the drugs.

He also is accused of ordering medically unnecessary urine drug tests while soliciting kickbacks and bribes from laboratories, knowing federal health care programs would be billed for the unnecessary test

As a condition of Khan's release pending trial, he is prohibited from writing prescriptions for controlled substances.

The now closed clinics, which offered prescription medications to help those struggling with opioid abuse, were located at:

* 120 Route 10 South, Grantham, NH

* 17 Coitview Drive, Newport, NH

* 376 South Willow Street, Manchester, NH

* 40 Winter St., Suite 308, Rochester, NH

* 1 Scale Ave., Building #18, Suite 301, Rutland, VT

* 85 Prim Road, Suite 302, Colchester, VT

NEMCA patients who need assistance with finding a new medical provider can reach out to 211 in New Hampshire or VTHelplink (802-565-LINK) in Vermont

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.