Glasgow Daily Times, Glasgow, KY

Local News

July 9, 2014

Doctor’s license restricted, employee told investigators Chandra Reddy illegally provided controlled medications

CAVE CITY — A Cave City physician’s medical license has been restricted indefinitely by the Kentucky Board of Medical Licensure following an investigation into his distribution of prescription medication.

According to an agreed order filed July 2, Chandra M. Reddy, who specializes in internal medicine, may not prescribe controlled substances until he satisfies a number of requirements, such as completing 96 hours of inpatient evaluation by the Kentucky Physicians Health Foundation and residential treatment, if recommended by the evaluation, both at his expense. Reddy also must reimburse the board of licensure for $1,800 in investigation costs.

The board’s website indicates Reddy’s medical practice is at 440 E. Happy Valley St. in Cave City. The agreed order lists a residential address in Glasgow.

According to the agreed order, the Barren-Edmonson-Allen Drug Task Force reported to the board in 2013 that it received information that Monica Berry, one of Reddy’s employees, was illegally providing controlled medications. Berry and others subsequently told investigators that Reddy was providing prescription medication without patients visiting Reddy’s office. Investigators discovered additional information suggesting Reddy was exchanging prescription medication for cash and marijuana and that he was using marijuana himself.

The drug task force also reported Reddy contacted a local pharmacy in August and asked for records of all controlled medications filled by the pharmacy from his office for a year.

“There was a concern he was planning to falsify charts to cover-up that he did not keep accurate charts on patients or that some charts may not have even existed prior to the investigation,” the agreed order said.

A detective with the drug task force and another detective with the Kentucky State Police interviewed a patient, whose name was not listed in the agreed order, who said he approached Berry about obtaining pain medicine. She reportedly brought him Oxycontin and a prescription in his girlfriend’s name. The document said Berry asked the patient two weeks later for marijuana, which he provided. Such exchanges continued from there.

The agreed order also said Berry also told detectives she had been involved in a sexual relationship with Reddy and that Reddy “was known around town as ‘the candy man’ because of the large amount of pain medication prescriptions that he wrote.”

The document said a detective also spoke to Dana Stergin, who was Reddy’s medical assistant. Stergin said Reddy pre-signed blank prescription pads and left them for Michelle Goodman, APRN, to use while he traveled to India and that Reddy did not perform urine drug screens on patients receiving controlled substances. Stergin also told investigators about 70 percent of Reddy’s patients sought pain management services, but he began to refer patients to clinics and psychologists more often once he learned of the investigation.

The agreed order also indicates Reddy and his wife “upcoded” billings to Medicaid and insurance companies and that when Goodman called Reddy – who reportedly often worked from 10 a.m. to 2 p.m. – on Friday afternoons, he often sounded intoxicated.

In January, Reddy was evaluated by Greg Jones, medical director of the Kentucky Physicians Health Foundation, during which Reddy said he had not used marijuana for many years. Reddy agreed to a 14-panel hair test, which produced a positive result of cannabinoids at levels consistent with repeated use within the previous three months, the document said. Reddy subsequently told an investigator he had smoked marijuana on a trip to India in 2012, on a trip to Mexico in February 2013 and with friends in Michigan and Washington, but that he never uses it in Kentucky.

The board’s inquiry panel allowed Reddy to resolve the investigation by entering into the agreed order in lieu of a complaint and a emergency order of restriction. The panel also referred information regarding upcoding of medical bills to the Department of Medicaid Services.

Reddy previously was sanctioned by the board in October 2010 following its investigation into a Cave City Police Department report that Reddy made inappropriate comments to and contact with two female patients during examinations. That sanction, which required a chaperone to be present when Reddy examined female patients, was lifted a year later.

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