Georgia hospital CEO, ED director, family physician accused of running pill mill

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A former hospital CEO and two physician leaders have been indicted on charges related to an alleged pill mill operation they perpetrated from the hospital. John Michael Gowder and physicians David Gowder and James Heaton were indicted as part of Operation SCOPE on federal charges for illegally prescribing and obtaining thousands of prescription pain medications "outside the usual course of professional medical practice and for no legitimate medical purpose," according to the Department of Justice. 

Citing the U.S. Attorney's Office, the indictment, and information presented in court, the DOJ said that for four years, from 2011 to 2015, John Michael Gowder, also known as Mike Gowder, served as the CEO of Union General Hospital in Blairsville, Georgia. Physician David Gowder served as the Emergency Room Director and James Heaton operated a family practice clinic in Blairsville.

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Mike and David Gowder allegedly conspired together to illegally obtain oxycodone, hydrocodone, and alprazolam, which is commonly prescribed to treat anxiety and is sold generically and under the brand name Xanax. The DOJ alleged that David Gowder unlawfully obtained these controlled substances from patients he treated at the hospital and also illegally issued prescriptions for oxycodone, hydrocodone, and alprazolam in the names of his and Mike Gowder's family members, existing hospital patients, and patients that did not actually exist. 

The drugs obtained with the illegal prescriptions were not for any legitimate medical purpose, the DOJ said, and between April 2013 and April 2015, David Gowder issued at least 45 illegal prescriptions.

David Gowder allegedly directed hospital employees to fill the prescriptions at local pharmacies, gave them cash to pay for the drugs, and then had the employees give the drugs to him. He also allegedly forged the names of other physicians on the prescriptions on certain occasions. Mike Gowder is said to have abused his position as CEO, firing hospital employees who tried to expose David Gowder's alleged illegal prescribing practices, or intimidating them into not exposing them, according to the DOJ.

Heaton allegedly prescribed oxycodone and other controlled substances to Mike Gowder, Gowder's family members and others despite knowing they were not medically necessary or justified. Mike Gowder filled the prescriptions Heaton issued at different pharmacies in Georgia, Tennessee, and North Carolina so as to conceal his activities, the DOJ said. He is said to have issued more than 70 illegal prescriptions, according to the DOJ.

"Americans rely on healthcare providers, many of whom are medical doctors, to use their training to help patients and to 'do no harm,'" said Robert Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. "The moment these individuals decided to engage in this criminal behavior, they became nothing more than traditional drug traffickers."

There is no word yet on when the case might go to trial, or if a plea agreement is in process.

Twitter: @BethJSanborn
Email the writer: beth.sanborn@himssmedia.com