How Federal Investigations Affect Medical Licenses
Federal agents and Michigan licensing officials do not wait for each other. A DEA raid or Justice Department subpoena in Detroit can open a second case with the Michigan Department of Licensing and Regulatory Affairs (LARA). Chapman, Dowling & Mallek builds professional license defense into the federal case in Michigan and nationwide. Our Detroit medical license defense lawyer handles both.
How a Federal Case Leads to a Michigan Board of Medicine Investigation
The U.S. District Court for the Eastern District of Michigan in Detroit handles federal health care cases. The city’s federal Health Care Fraud Strike Force often targets billing and opioid prescribing, and LARA does not need an indictment to open its own file.
The state case uses a lower standard of proof. Prosecutors must prove guilt beyond a reasonable doubt, while the state only has to show a violation was more likely than not. Federal charges can be dismissed, and the license can still be revoked based on the same records.
Can I Practice Medicine During an OIG Investigation?
Yes, in most cases, you can keep seeing patients. An investigation alone does not suspend your license or put your name on the HHS-OIG exclusion list.
Trouble tends to grow once charges are filed. The collateral consequences of a federal indictment can include:
- Suspended Medicare and Medicaid payments
- Hospital privilege reviews
- Limits on your DEA registration
Exclusion is the most serious because Medicare, Medicaid, and TRICARE stop paying for your services. Employers that bill those programs generally cannot keep you on staff.
What to Do if You Receive a Federal Subpoena or Target Letter
A target letter means prosecutors already see you as a likely defendant. Take these steps before you answer anyone:
- Do not talk to agents: Tell FBI, DEA, or HHS-OIG agents you want counsel present.
- Keep every record: Changing or deleting patient charts can bring separate obstruction charges.
- Read your malpractice policy: Some pay defense costs for board matters.
- Hire counsel for both tracks: Pick a team that handles federal charges and state licensing hearings.
Agents may contact your staff, too. Let employees know they can ask for counsel first, and never coach anyone on what to say.
Does a Federal Indictment Automatically Suspend a Medical License?
No, an indictment alone does not suspend your license. After a felony conviction, MCL § 333.16233(5) requires the summary suspension of Michigan medical license privileges before a full hearing. LARA can also order an earlier suspension in an emergency.
Michigan gives you 30 days after a conviction to notify LARA, and missing that deadline is a violation in its own right. Convictions and license actions are NPDB reportable offenses, and hospitals check the National Practitioner Data Bank whenever you apply for privileges.
Text or Call Our Detroit Medical License Defense Lawyer at Any Hour
A text to (346) 242-7626 reaches the 24-hour hotline at Chapman, Dowling & Mallek, where you speak directly with one of our lawyers. The consultation is free. Our team prefers to step in early and work quietly, so request your consultation before either agency makes its next move.