New Undersecretary of Health comes with legal issue on file

From the CPI

The appointment of a new Undersecretary of the Department of Health, Félix Rodríguez Schmidt, has remained under the radar, as well as the departure of Iris Cardona from this position, to remain as director of the COVID Vaccination Program -19. The change appears to be one of many in the Health scaffolding to be announced soon, the agency anticipated at the Center for Investigative Journalism (CPI).

In 2008, Rodriguez Schmidt, who confirmed to the ICC that he was medical director of Medical Web Services – a corporation that sold prescription drugs through websites – was charged in a federal case along with five other doctors for dispense medicines without a legitimate medical purpose, court records show.

Medical Web Services pleaded guilty to the crime. Rodriguez Schmidt said that although the other doctors involved were found guilty, he did not go to trial “because his charges were dismissed.” According to the copy of the document he sent to the ICC, the indictment was dismissed without prejudice.

When the ICC asked him if he had generated profits from the sale of these medicines as stated in the federal indictment, he said “I do not remember this document, nor is it in my mind.” The ICC later urged Health to explain a case file document stating that the doctor would pay $ 17,000 as part of the existing legal proceedings, and the agency stated:

“There is a civil claim by the state of Iowa in which for reasons of convenience it was agreed to pay the amount of $ 17,000. This was a civil and non-criminal action against Rodriguez Schmidt. And the definition of a transaction establishes that neither party accepts responsibility for the defendant. “

The case in which Rodriguez Schmidt was charged was a criminal, but was resolved as a civil case through an agreement. The criminal indictment was dismissed contingent on Rodriguez Schmidt paying $ 17,000 through a Pre-Trial Deviation Agreement he signed on September 24, 2009 with the Federal District Attorney for Northern Iowa. The prosecution reserved the right to prosecute if the agreement was not complied with.

Under his supervision, during June 2002 and at least until May 2004, doctors and pharmacists hired by the company authorized and dispensed more than 175,700 prescriptions. Rodriguez Schmidt worked at the company from approximately September 24, 2003 to December 7, 2003, according to the documents.

The pediatrician told the CPI that he did not approve the sale of drugs and alleged that being medical director he did not know what was happening to the company.

When asked what his roles were as the medical director of Medical Web Services, Rodriguez Schmidt responded that he recruited and supervised employees from various states in the United States. “It was a very broad dynamic,” he added.

According to the indictment, customers registered through any of the websites affiliated with Medical Web Services and placed prescription drug orders after completing a brief health questionnaire and providing payment information. Customers were not required to submit any medical order to purchase and their identity was not verified. In most cases, doctors approved prescription drugs without reviewing any medical records, according to the indictment.

Once doctors approved the distribution of the drugs, Medical Web Services generated their signature digitally. In this way, the contracted pharmacies downloaded the electronic prescriptions, filled the batches and sent the controlled substances to the customers.

Mellado pulls his face out for the appointment

“I spoke to him and in the case he had in 2008 he was not charged with absolutely anything. He was simply pointed out and he clarified it,” Mellado told the CPI. “The information I have, according to check history, is that it has no case at the federal level, “he added.

The Secretary of Health acknowledged in questions the ICC that he “can consider” Rodriguez Schmidt as his friend. The pediatrician also confirmed their friendship.

“I’ve known him for a thousand years. I know him as a doctor, on a personal level, as a health worker and as a pediatrician. […] Yes, I can consider it my friend, how can I not? But I know his professional plan, ”Mellado said.

Rodriguez Schmidt stated that he was interviewed by the Secretary of Health to discuss the responsibilities of the position and its background prior to taking up the post.

They keep appointment for bass

The agency has not publicly announced the change of command to the undersecretariat, although it has been in effect since January 4th.

“I have not communicated it. But I have clarified what he has asked me. A press conference will soon be held to change the scaffolding of Health and everything will be published,” said Lisdián Acevedo, a reporter at the Department of Health.

Cardona was appointed in May 2020 by the former Secretary of Health under the last administration, Lorenzo González. Health began referring to the pediatrician only as the director of the Department’s COVID-19 Vaccination Program in January.

Although Mellado assured the ICC that Rodríguez Schmidt began acting as undersecretary in January, at least until February 12, the government represented in legal documents in a case of access to information that Cardona was the undersecretary.

On January 4, 2021, the Department of Health notified staff internally through a memo that Undersecretary Rodriguez Schmidt, along with Secretary of Administration Johnny Colom Gonzalez, would be responsible for “appearing and signing agreements, contracts and other documents on behalf of the agency “.

He has had at least four contracts with the Government

Months before the federal indictment, Rodriguez Schmidt started the company Bridges for Health on May 3, 2008, according to the State Department Registry of Corporations. Two months later, he received a $ 180,000 contract to provide “health-related services” to the Veteran’s Attorney’s Office.

Rodriguez Schmidt admitted to the CPI that he created this company just to run this office. “I went in to put out a fire in a very difficult situation. There were ugly allegations of theft and embezzlement (which had been identified) by the Federal Department of Veterans Affairs,” he said.

However, the contract he obtained at the Veteran’s Attorney’s Office was canceled in 2009. The pediatrician argued that it was due to the federal Medical Web Services case in which he had been charged.

Although the indictment is dated August 2008, the contract was canceled in May 2009, nine months later, according to Rodriguez Schmidt.

The pediatrician said “it was not easy to find a company that wanted to run the Veteran’s Attorney’s Office.”

“I didn’t like the situation. On top of that I’m a pastor of a church and 20 things, and I didn’t want to be involved in this situation and we decided to cancel by mutual agreement,” Rodriguez Schmidt said. .

In a second call, the pediatrician said he sued the Veteran’s Attorney’s Office because his contract had been canceled and he got all the money even though he did not offer the services for the duration of the stay. ‘agreement.

The Bridges for Health corporation was canceled at the State Department on April 16, 2014. According to the government agency, the company failed to meet its annual obligations such as submitting documents or paying its annual dues since from 2009 to 2012.

However, Rodriguez Schmidt continued to do business in Puerto Rico.

Under the administration of Governor Luis Fortuño, the doctor received a contract in 2011, for less than a month, to provide “administrative consulting services” to the Department of Health for $ 11,000. The contract lasted from May 12 to June 30, according to the Contracts Registry of the Comptroller’s Office.

From September 2012 to December 2012, Rodriguez Schmidt received a three-month contract at the Patient Attorney’s Office, for which he received $ 24,000, for “health-related services.” Mellado was solicitor of the Patient in this period, named by Fortuño.

During this period, from August 2012 to June 2013, the new Undersecretary of Health also received another contract to provide “administrative consulting services” to the Department of Health for $ 66,000.

Rodriguez Schmidt is president of the Board of Directors of the University System Ana G. Méndez and was in the past years medical director of the Correctional Medical Center of Bayamón.

This note is published in Metro thanks to an alliance with the Center for Investigative Journalism. You can access the original version HERE

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