Herndon to repay $700,000

  • By Linda Metz
    Staff writer
September 12, 2012

A McMurray doctor who is awaiting sentencing for illegally prescribing large amounts of powerful narcotics has agreed to pay two insurers a total of $700,000 in restitution for his actions, according to court documents filed Monday.

Oliver W. Herndon, 40, who moved his office from West Mifflin to McMurray shortly before his federal indictment in April, is set to be sentenced Sept. 24 by U.S. District Judge Arthur J. Schwab. He was indicted for illegally prescribing more than 14,000 high-dosage pills of oxycodone and Opana.

Many of the prescriptions and office visits by Herndon were covered by various health-care plans, including Highmark, UPMC and Gateway. Itís estimated that Herndonís prescriptions cost the health-care companies between $400,000 and $1 million.

In May, Herndon pleaded guilty to prescription drug abuse and health-care fraud in exchange for a sentence of no more than 11 years in prison. At the time, there was no requirement specified for payments to the insurance companies.

According to court records, Herndon has agreed to repay UPMC $490,000 and pay another $210,000 to Gateway.

However, all is subject to Schwabís formal approval.



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