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Tennessee-Based Pain Management Group To Close Clinics Amid Financial Turmoil

John Davis, former CEO of Comprehensive Pain Specialists (Heidi de Marco/KHN)

One of the聽largest聽pain management groups聽in the Southeast is closing multiple clinics amid worsening financial troubles and a federal criminal investigation that targeted its former chief executive.

This week, Tennessee-based Comprehensive Pain Specialists advised patients and employees about clinic closures, leaving patients scrambling to find new doctors willing to prescribe them opioids, according to a on WSMV television.

Based in the Nashville area, CPS opened in 2005 and quickly grew into a powerhouse, which has treated as many as 48,000 pain patients a month, at more than 50 clinics in Tennessee and other states.

CPS did not respond to numerous requests for comment.

The doctor-owned company has endured a series of recent setbacks, including earlier clinic closures, pending lawsuits over alleged debts and the criminal case against former CEO John Davis.

In April, a federal grand jury in Tennessee indicted Davis on criminal kickback charges. He has pleaded not guilty. CPS also has faced nearly a dozen civil lawsuits from contractors alleging unpaid debts, including suits brought by two of its former doctors. A Justice Department official said the closure was not related to the criminal case against Davis.

The shutdown of the clinics comes amid growing backlash against the use of opioids for treating chronic pain. The opioid crisis has cost the U.S. economy more than since 2001, estimates Altarum, an economic research firm. Since 1999, at least 200,000 people have died nationwide from overdoses, according to the Centers for Disease Control and Prevention.

According to the company鈥檚 website, CPS now operates 40 clinics in eight states: Arkansas, Illinois, Indiana, Kentucky, Mississippi, North Carolina, Ohio and Tennessee. Half are in Tennessee. The Tennessean Tuesday that all 21 clinics in the state would be closing by the end of the month.

CPS was the subject of a November聽2017 investigation聽by Kaiser Health News that聽scrutinized its Medicare billings for聽urine drug testing. Medicare paid the company at least $11 million for urine screenings and related tests in 2014, when five of CPS鈥 medical professionals stood among the nation鈥檚 top such Medicare billers. One nurse practitioner at聽a聽CPS聽clinic in Cleveland, Tenn., generated $1.1 million in urine-test聽billing聽that year, according to Medicare records聽analyzed by KHN.

(Courtesy of Comprehensive Pain Specialists)

Peter Kroll,聽an anesthesiologist and聽one of CPS鈥 founders,聽said at the time that聽the tests聽were justified聽to monitor patients against risks of addiction or聽reduce聽chances聽the pills聽might be sold聽on the black market.聽Kroll, who is the company鈥檚 current CEO and medical director,聽billed Medicare $1.8 million for聽urine聽tests in 2015, agency records showed.

Kroll took charge of the business when Davis left the company abruptly last summer. He could not be reached for comment Tuesday.

Federal prosecutors charged Davis with accepting more than $750,000 in illegal bribes and kickbacks聽in a scheme that billed Medicare $4.6 million for durable medical equipment.

鈥淎s CEO, Davis oversaw the substantial expansion of CPS, recruiting new physicians and clinics to join CPS, as well as directing various aspects of the company鈥檚 overall treatment of patients,鈥澛爌rosecutors wrote in a May court filing.

Davis has pleaded not guilty.聽The U.S. attorney鈥檚 office has said in court filings that聽CPS聽and its employees are聽鈥渧ictims鈥 in the case.

The company also has been hit with civil suits. Anesthesiologist Donald E. Jones sued the company in聽May 2017, alleging that it failed to honor his employment contracts.

Jones聽said he joined the firm in 2012聽to staff three聽Tennessee聽clinics at聽a聽salary of聽$30,000 a month plus a percentage of fees from laboratory and other services. Jones聽argued that he generated collections in excess of $9 million. In 2016, the clinics served 41,364 patients, the busiest聽of all the clinics, according to the suit.

But in April 2016, according to聽the suit, CPS quit paying him and聽in February 2017 the company began transferring his patients to other clinics and 鈥渕aking disparaging remarks鈥 about him to patients.

CPS countered that Jones failed to deliver 鈥渟afe and effective medical care, which CPS in court filings attributed to an 鈥渙ngoing compensation dispute.鈥澛燭he suit is pending.

(Courtesy of Comprehensive Pain Specialists)

Pain specialist William Wagner聽also is suing聽the company. He said he聽relocated from New Mexico to open a CPS clinic in Anderson, S.C.,聽lured by the promise of $30,000 a month in salary and a share of the profits from urine tests and other services.

Instead, according to Wagner, CPS failed to collect bills for services he rendered and then closed the clinic. CPS denies Wagner鈥檚 claims and says it fulfilled its obligations under the contract. In a counterclaim, CPS argues that Wagner owes it $190,000. The case is pending.

Several contractors, including companies that leased office space and medical software, also have taken CPS to court alleging unpaid bills and leases, according to court filings.聽The cases are pending.

Kroll told KHN last year that he and聽fellow anesthesiologist聽聽came up with the idea for CPS聽in August 2005, over a cup of coffee聽at聽a聽Nashville Starbucks. At the time, Tennessee聽was聽confronting an emerging opioid epidemic.

Kroll, raised in North Carolina, had moved to Nashville to launch a career in anesthesiology, a specialty he chose after watching his older brother die from an agonizing disease with little help from pain specialists.

Joined by two other doctors, Kroll and Dickerson opened with a single storefront in suburban Hendersonville.聽Dickerson, who was elected to the Tennessee Senate in 2012, remains at CPS, according to its website. Calls to Dickerson鈥檚 office were not returned.

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