Dr. Kelly Shrum ... - My Monticello News > News > Local News
In November of 2010, a federal jury found Shrum, a gynecologist, guilty of one count of misdemeanor misbranding in violation of the Food, Drug, & Cosmetic Act and one count of health care fraud. The charges stemmed from allegations that Shrum, 43, misbranded and and billed Medicaid for Mirena IUD contraceptives manufactured in Finland by Bayer and purchased through a Canadian pharmacy instead of from Bayer's designated United States sales distributor. At the time, Shrum was practicing in Pine Bluff. This investigation began in April of 2009, with an anonymous tip to the Medicaid Fraud Control Unit of the Arkansas Attorney General’s Office hotline regarding Shrum’s use of an intrauterine device (IUD) that had not been approved by the Food & Drug Administration for distribution in the United States. During the execution of a search warrant at Shrum’s former office at the Arkansas Center for Women, LTD in Pine Bluff, federal agents located non-FDA-approved IUDs, which were labeled in Scandinavian and Turkish languages. From January of 2008 through June of 2009, Shrum billed the Arkansas Medicaid Program as if he was providing Medicaid beneficiaries with the FDA-approved, Bayer manufactured IUD, Mirena ®, when in fact, he was providing the beneficiaries with a non-FDA approved IUD. In that time period, Arkansas Medicaid paid Shrum over $162,000 on fraudulent claims for Mirena.
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