UBiome is under investigation by the FBI

[Dr Carrot]

Mildly interesting:

UBiome, a microbiome-related startup under FBI scrutiny for its billing practices, announced Wednesday that its co-chief executives had been placed on administrative leave and that it had launched its own independent investigation into the matter.

In a statement, the company said founders Jessica Richman and Zac Apte were no longer serving as chief executives. UBiome’s board named general counsel John Rakow as interim CEO.

“I want all of our stakeholders to know that we intend to cooperate fully with government authorities and private payors to satisfactorily resolve the questions that have been raised, and we will take any corrective actions that are needed to ensure we can become a stronger company better able to serve patients and healthcare providers,” Rakow said in a statement.

https://www.statnews.com/2019/05/01...on-leave-amid-fbi-investigation-into-company/

 

[Patient4Life]

With uBiome’s clinical tests, which must be ordered by a physician, customers swab their stool, vagina, or nose and mail in a sample. The company sequences the different microbes in the sample to try to offer insights about their customers’ health.

(My bold.)

UBiome works with a group of physicians who order the tests through a telemedicine service, a standard practice for companies selling their products online. But some of the allegations reported to the FBI involve the way the physicians were paid for referring patients for the tests. The FBI has also heard allegations that uBiome changed certain billing codes for insurers in a way that might be illegal.

I am thinking alternative practice MD's and chiropractors involved with nutrition counseling are using this service.

 

[TigerLilea]

I had testing done through uBiome and it didn't require that the test be ordered by a physician.

 

[Patient4Life]

I had testing done through uBiome and it didn't require that the test be ordered by a physician

Interesting. Did insurance pay for it or did you pay out of pocket?

 

[TigerLilea]

Interesting. Did insurance pay for it or did you pay out of pocket?

I paid for it. Actually, the kit was free as I did it at the time of one of their promotions, however, because I don't live in the US I had to pay for shipping. I don't think that uBiome require any of their tests to be ordered by a physician.

 

[EzzieD]

I paid for it. Actually, the kit was free as I did it at the time of one of their promotions, however, because I don't live in the US I had to pay for shipping. I don't think that uBiome require any of their tests to be ordered by a physician.

So did I, back when a group of us here ordered that promotional offer last winter (January 2018). There was no need for it to be ordered from a physician, and as far as I knew from over the years when a couple of friends had mentioned uBiome to me as maybe something I would like to check out for their microbiome test, they have always marketed directly to the public. After I took up that promotional offer last January, they spammed me so continuously for months afterwards with emails asking me to buy their other services (directly from them), that I had to unsubscribe from their emails!

It sounds like this requirement to have a physician do the ordering must be a new development?

 

[arewenearlythereyet]

I suspect that any company selling stuff that has limited actual value has to keep working hard to maintain sales. They can’t rely on repeat purchases unless the thing keeps giving value to existing clients.

Hence the different routes to market and ever increasing strange promotions/sharp sales practices to bring in new customers.

 

[Patient4Life]

It sounds like this requirement to have a physician do the ordering must be a new development?

I don't think that uBiome require any of their tests to be ordered by a physician.

Here's the thing. If you pay for a test from a commercial testing company on your own you don't have to have a physician order it. But, if insurance pays for the commercial company's test then the insurance company would require the physician order it. Who cares who orders it if the client pays for it.

However, changing diagnostic coding used by a physician so insurance will pay for the test is a criminal act. If the ordering physician used diagnostic coding that would not satisfy the insurance company payment system or UBiome knew a certain diagnostic code would give them more money than using the diagnostic code the physician wrote, then that is against the law.

Again, if the client pays for the test then diagnostic coding isn't an issue. I think the responses UBiome was giving were about insurance diagnostic coding and insurance company payments and that is why a physician would have to sign off.

 

[Ron]

Email Received from Ubiome this morning:




On Friday, April 26, 2019, federal authorities, pursuant to a search warrant, searched uBiome’s facilities in San Francisco. We are cooperating fully with federal authorities on this matter.


Our Board of Directors has appointed John Rakow, our General Counsel, as Interim CEO of uBiome, effective immediately.


Our Co-CEOs, Jessica Richman and Zac Apte, are currently on administrative leave as we conduct an independent investigation into the company’s billing practices, to be overseen by a Special Committee of the Board. Once complete, we will take any corrective actions that are needed to ensure we can become a stronger company better able to serve patients and healthcare providers.


We will also be temporarily suspending clinical operations. At this time and until further notice, uBiome will not be offering SmartGut or SmartJane. We will continue to offer and process our Explorer product.


It is important to reiterate that this is a suspension . This does not mean we will not offer clinical products in the future, nor does this insinuate a lack of value or utility in our products. There is significant clinical evidence that demonstrates the utility and value of uBiome’s products as important tools for patients, healthcare providers, and our commercial partners. We look forward to continuing to demonstrate this clinical utility and value.


Any SmartGut or SmartJane request or order that is pending on your account has been canceled. If you made any out of pocket payment upfront, this will be refunded to you within 3-5 business days. We will not be releasing clinical reports, processing samples, billing health insurance, or shipping new collections kits, at this time. If you would prefer that any of your pending samples be destroyed, simply reply to this email. Our team will ensure this is taken care of for you expeditiously.


Thank you for your interest in our clinical products and your support of our company. If you have any further questions or concerns, contact us at support@ubiome.com or reply to this email.


The uBiome Team

 

[Mij]

Along the same lines, I watched this investigative report recently about 'food sensitivity' testing kits scams.

Not one of these companies wanted to appear on camera.

 

[TigerLilea]

uBiome has filed for bankruptcy and has shut down operations.