The owner of Randy’s Gateway Drug in Cedar Bluff, Virginia, has been sentenced to 18 months in prison for federal healthcare fraud. Randy Yost, aged 72, pleaded guilty in May 2024 to charges including healthcare fraud, conspiracy to commit healthcare fraud, and distributing oxycodone. His actions resulted in $1.3 million in losses to the federal government.
Court documents revealed that between April 2016 and June 2023, Yost and others at his pharmacy dispensed cheaper generic medications for Schedule II drugs like Oxycontin but billed government healthcare programs for more expensive brand-name versions. Additionally, they charged for medications not dispensed to patients and failed to reverse charges for returned medications that were then re-dispensed.
A government analysis conducted in February 2023 and February 2024 showed an adjusted loss of $1,309,515. Consequently, Yost was ordered to pay restitution: $1,035,279.44 to Medicare, $271,274.03 to Virginia Medicaid, and $2,961.75 to TriCare.
The announcement was made by Acting United States Attorney Zachary T. Lee along with Special Agent in Charge of the DEA’s Washington Division Jarod Forget and Virginia Attorney General Jason Miyares.
The investigation involved several agencies including the Drug Enforcement Administration (DEA), U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), Virginia Office of the Attorney General-Medicaid Fraud Control Unit (MFCU), and the Department of Defense Criminal Investigative Service-Office of Inspector General (DCIS-OIG).
Special Assistant United States Attorney Janine Myatt and Assistant U.S. Attorney Danielle Stone prosecuted the case.