The US Department of Justice (DOJ) has taken action against Done Global, a telehealth company, for unlawfully distributing Adderall and other controlled substances used to treat ADHD (Attention-deficit/hyperactivity disorder). Is the telehealth industry, which gained popularity during the COVID-19 pandemic, turning into a place for “pill mills” and enabling people to obtain drugs without proper checks?

Put simply, telehealth is clinical healthcare offered online through electronic information and telecommunication technologies. While the industry has existed for quite a while, it gained traction during the COVID-19 pandemic.

Telehealth Gained Traction in 2020

During the COVID-19 pandemic, the US government expanded the use of telemedicine which helped aid the sector’s growth. For instance, Teladoc Health, which is a listed company in the space, reported YoY revenue growth of 98% in 2020 and 86% in 2021.

The US Federal government took several measures to support and promote telehealth to help lower the pressure on physical infrastructure. However, behind the growth – which is led by the convenience that telehealth brings – is the dark reality of some companies gaming the expanded coverage to make profits illegally.

DOJ Cracks Down on Telehealth Company Done Global

According to the DOJ, Done Global founder Ruthia He and clinical president David Brody, “exploited the expansion for profit.” It charged them with over-prescribing unneeded stimulant pills which could potentially put patients in danger and also worsen the current stimulant medicine shortage.

In a wide-ranging action, the DOJ imposed criminal charges against 193 persons which included doctors, nurse practitioners, and other licensed medical professionals.

In his hard-hitting comments, Attorney General Merrick B. Garland said, “It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company if you profit from the unlawful distribution of controlled substances, you will be held accountable.”

The DOJ began its investigation against Done Global in 2022 after a Wall Street Journal report said that some medical professionals felt they were being pressured to prescribe stimulants on the telehealth company’s platform.

In November of that year, LegitScript, a company that online platforms work with to decide which telehealth companies can advertise, suspended Done Global’s certification. However, despite that, online platforms let the company advertise and reach more users. According to the documents reviewed by the Wall Street Journal, since then Done Global has spent $20 million on Google, $3 million on TikTok, and $7 million on Meta which owns Facebook, Instagram, and WhatsApp.

Google and TikTok Ban Done Global

Meanwhile, both Google and TikTok have now banned Done Global from running ads on their platforms. However, Meta has only partially banned the company and while it can still run ads, it won’t be allowed to run ads that promote prescription drugs.

Notably, digital ads have helped in the growth of the telehealth industry, and these leading platforms allowing Done Global to run ads despite not regaining the certification following its being suspended by LegitScript looks perplexing.

Incidentally, the DOJ alleges that Brody and He “obtained subscribers by targeting drug seekers and spending tens of millions of dollars on deceptive advertisements on social media networks.”

The DOJ has arrested He and Brody over the prescription of stimulants without due diligence. “As alleged, these defendants exploited the COVID-19 pandemic to develop and carry out a $100 million scheme to defraud taxpayers and provide easy access to Adderall and other stimulants for no legitimate medical purpose,” said AG Garland.

Done Global Denies Any Wrongdoing

ADHD medication looks like a key growth area for Done Global. On its website, it recommends an appointment with a specialist – either physically or virtually – to diagnose ADHD, and the online consultation can happen through its telehealth platform.

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To be sure, the company has a system in place before it offers ADHD medication. Among others, the patient’s Prescription Drug Monitoring Program report “is reviewed by internal teams that have been trained by pharmacists to identify potential patterns of abuse or misuse, after clearance.”

However, the DOJ alleges that the telehealth company’s platform was used to prescribe prescription drugs without following the necessary due process.

On its part, Done Global has denied any wrongdoing on its behalf, and in its statement, it said, “Done Global strongly disagrees with the criminal charges filed last week against our founder, Ruthia He, and Dr. David Brody, which are based on events that principally occurred between February 2020 and January 2023.”

Done Global Isn’t the Only Alleged Bad Actor

To be sure, Done Global is not the first company that has been accused of the malpractice of prescribing stimulants without proper screening. In May 2022, Cerebral Inc., a SoftBank-backed mental healthcare startup, was issued a subpoena by a grand jury. The company now does not prescribe stimulants.

In December 2022, the US Drug Enforcement Administration (DEA) issued a show-cause notice to Truepill Pharmacy. The DEA alleged that “Cerebral arranged for patients to receive prescriptions for ADHD treatments through a telehealth visit, and for Truepill to fill those prescriptions.”

DOJ is Looking to Go After More Telehealth Companies

The US might be looking to go after more telehealth companies. Christi A. Grimm, Inspector General of the U.S. Department of Health and Human Services said, “We will continue to work with our law enforcement partners to protect the enrollees of federal health care programs by ensuring that requirements for the appropriate, legal prescribing of stimulants and other drugs are always met, and those who choose to violate them are held accountable.”

Notably, while the telehealth industry’s growth has slowed down significantly since 2022, mental health is still a fast-growing area. Now, with the Feds cracking down on reckless prescription of stimulants by these platforms, companies would also need to be extra cautious and not be seen as pill mills that become the preferred mode to obtain these prescription drugs without following the due process.