Kansas doctor’s license revoked in $16 million medical fraud scheme

OVERLAND PARK, Kan. ( KSNT ) – A Kansas surgeon had his license to practice medicine revoked Tuesday after defrauding the federal government of millions in cash over the course of several years.

The Kansas State Board of Healing Arts (KSBHA) issued a press release on July 16 with its final order in the case of Gautam Jayaswal from the Overland Park area. The board overruled an objection from Jayaswal, upholding an order from earlier in the year to revoke his license to practice medicine and surgery in Kansas.

Jayaswal pleaded guilty on May 9, 2023 in the U.S. District Court of St. Louis after admitting he ordered millions of dollars worth of unnecessary and expensive genetic tests and orthotic braces for thousands of patients as part of a telemedicine fraud scheme, according to the Department of Justice ( DOJ ). For these crimes, Jayaswal faced a possible fine of up to 250,000, five years in prison or both.

Documents released by the KSBHA show Jayaswal entered into a plea agreement after pleading guilty to defrauding the federal government. Between January 2017 and May 2021, he ordered orthotic braces for just over 1,400 patients even though the braces were not medically necessary, leading to companies receiving more than $1.3 million due to the fraudulent orders.

Jayaswal also signed genetic test orders, which caused laboratories to submit reimbursement claims to health care benefit programs. This led to Medicare Part B payouts of more than $14.7 million for around 2,060 patients.

The KSBHA canceled his medical and surgical license on July 31, 2023, which he later requested a hearing over. A KSBHA licensee will have their license revoked upon a felony conviction unless a two-thirds majority of the board members vote otherwise. The KSBHA overruled Jayaswal’s objection Tuesday to the revocation, citing that he has been convicted of a felony, cannot show he will not pose a threat to the public trust and does not show he has been rehabilitated.

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