Randy Yost, the owner of Randy’s Gateway Drug in Cedar Bluff, Virginia, was sentenced to 18 months in prison for his role in a healthcare fraud scheme that resulted in $1.3 million in losses to the federal government, according to the U.S. Attorney’s Office, Western District of Virginia.
Yost, 72, pleaded guilty in May 2024 to multiple charges, including healthcare fraud, conspiracy to commit healthcare fraud, and distributing oxycodone. His actions caused significant financial harm to Medicare, Medicaid, and Tricare programs over a period spanning from April 2016 to June 2023.
Court documents reveal that Yost, who owned the pharmacy, participated in government healthcare programs and routinely engaged in fraudulent practices. Specifically, Yost dispensed generic medications that were far cheaper than the brand-name drugs, such as OxyContin, but billed Medicare and other government healthcare programs for the more expensive brand-name versions.
In addition to this fraudulent billing, Yost also billed for medications that were never actually dispensed to patients. The scheme also included billing for medications that were returned to the pharmacy by patients and resold, with Yost submitting the charges again to government programs without reversing the initial billing.
A government analysis in 2023 and 2024 confirmed the fraudulent activity and calculated the adjusted loss to the government at $1,309,515. Yost was ordered to pay restitution for the amounts defrauded, including $1,035,279.44 to Medicare, $271,274.03 to Virginia Medicaid, and $2,961.75 to Tricare.
Yost’s sentence serves as a warning about the severe legal consequences of committing healthcare fraud and abusing pharmacy operations for personal gain.