Cerebral Receives Subpoena From Federal Prosecutors
Cerebral Inc., the online mental-health company, said on Saturday it has been subpoenaed by federal prosecutors as part of an investigation into possible violations of the Controlled Substances Act.
Cerebral, one of a group of telehealth startups that have sprung up to treat attention-deficit hyperactivity disorder, said the grand jury subpoena was received on Wednesday from the U.S. attorney’s office for the Eastern District of New York. Cerebral said the subpoena was issued to Cerebral Medical Group, the corporation it uses to contract with clinicians and provide healthcare services. Cerebral’s statement said that it intends to cooperate with the investigation and that no regulatory or law-enforcement authority has accused it of violating any law.
A spokesman for the U.S. attorney’s office declined to comment Saturday.
The Wall Street Journal reported in March that some of Cerebral’s nurse practitioners said they felt pressured by the company to prescribe stimulants and that they felt the company’s 30-minute patient evaluations weren’t long enough to properly diagnose ADHD. The company said at the time that it doesn’t pressure clinicians to prescribe stimulants and that it is providing an essential service in the U.S., where demand for mental-health treatment far outstrips supply.
Some pharmacies have blocked or delayed certain prescriptions from Cerebral prescribers over concerns that the company was writing too many stimulant prescriptions, the Journal reported last month. Cerebral’s preferred pharmacy partner, Truepill Inc., stopped filling all prescriptions for stimulants. Cerebral has said prescription delays occurred because of confusion around telehealth policies.
A former Cerebral executive also filed a lawsuit alleging the company put growth before patient safety. Cerebral said the allegations in the lawsuit were false and that it would vigorously defend itself.
On Wednesday, Cerebral executives told its clinicians that the company would pause prescribing controlled substances, including Adderall and other stimulants, to treat ADHD in new patients. Cerebral’s chief medical officer wrote to clinicians that the company would continue prescribing controlled substances for other mental-health conditions, and continue to treat existing ADHD patients with stimulants, the Journal reported, citing an internal message.
Insider earlier on Saturday reported that Cerebral had been subpoenaed.
Cerebral said in its statement Saturday that controlled substances are appropriate treatment for many conditions, and that the company works to ensure that its policies and procedures for prescribing such drugs are medically appropriate and comply with the law.
“The safe medical care of our patients is our highest priority,” it said.
Write to Rolfe Winkler at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Cerebral Inc., the online mental-health company, said on Saturday it has been subpoenaed by federal prosecutors as part of an investigation into possible violations of the Controlled Substances Act.
Cerebral, one of a group of telehealth startups that have sprung up to treat attention-deficit hyperactivity disorder, said the grand jury subpoena was received on Wednesday from the U.S. attorney’s office for the Eastern District of New York. Cerebral said the subpoena was issued to Cerebral Medical Group, the corporation it uses to contract with clinicians and provide healthcare services. Cerebral’s statement said that it intends to cooperate with the investigation and that no regulatory or law-enforcement authority has accused it of violating any law.
A spokesman for the U.S. attorney’s office declined to comment Saturday.
The Wall Street Journal reported in March that some of Cerebral’s nurse practitioners said they felt pressured by the company to prescribe stimulants and that they felt the company’s 30-minute patient evaluations weren’t long enough to properly diagnose ADHD. The company said at the time that it doesn’t pressure clinicians to prescribe stimulants and that it is providing an essential service in the U.S., where demand for mental-health treatment far outstrips supply.
Some pharmacies have blocked or delayed certain prescriptions from Cerebral prescribers over concerns that the company was writing too many stimulant prescriptions, the Journal reported last month. Cerebral’s preferred pharmacy partner, Truepill Inc., stopped filling all prescriptions for stimulants. Cerebral has said prescription delays occurred because of confusion around telehealth policies.
A former Cerebral executive also filed a lawsuit alleging the company put growth before patient safety. Cerebral said the allegations in the lawsuit were false and that it would vigorously defend itself.
On Wednesday, Cerebral executives told its clinicians that the company would pause prescribing controlled substances, including Adderall and other stimulants, to treat ADHD in new patients. Cerebral’s chief medical officer wrote to clinicians that the company would continue prescribing controlled substances for other mental-health conditions, and continue to treat existing ADHD patients with stimulants, the Journal reported, citing an internal message.
Insider earlier on Saturday reported that Cerebral had been subpoenaed.
Cerebral said in its statement Saturday that controlled substances are appropriate treatment for many conditions, and that the company works to ensure that its policies and procedures for prescribing such drugs are medically appropriate and comply with the law.
“The safe medical care of our patients is our highest priority,” it said.
Write to Rolfe Winkler at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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