Rare disciplinary case against Pa. doctor offers glimpse into big business of medical marijuana cards

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A patient’s complaint about her virtual appointment through Veriheal has offered a look inside the multimillion dollar certification industry.

HARRISBURG — When Bette Grey considered using cannabis to help with chronic pain last year, she turned to the nationwide medical marijuana card company Veriheal.

Indeed, Colterelli’s case is unique. He is the first physician to face formal discipline from the Pennsylvania Department of Health for allegedly violating the rules of the state’s medical marijuana program since it was created in 2016, public records show. There are over 417,000 active patients, and more than 1,800 approved medical marijuana physicians.

Other supporters of medical marijuana have publicly questioned the practices of third-party medical marijuana companies, including Veriheal. These businesses help patients schedule appointments with doctors who can conduct an evaluation, the key step to obtaining a medical marijuana card in Pennsylvania. Their profits are often based on approvals: Veriheal’s website for Pennsylvania promises patients willVeriheal has also been accused of paying a fee to doctors only if they approve patients.

Under Pennsylvania law, medical marijuana physicians must complete a full assessment of the patient’s medical history and current medical condition in order to issue a certification. It’s unclear how many people Colterelli approved under Pennsylvania’s program. An attorney for the department raised the question during his disciplinary hearing, but the examiner overseeing the proceeding ruled he didn’t need to answer.Grey, 62, has more experience with medical care than most. She’s a licensed respiratory therapist, the founder of a free medical clinic in Columbia County, and a member of the State Board of Osteopathic Medicine.

During a hearing, Colterelli’s attorney and Grey clashed over whether the process for uploading medical records was clear for patients. Colterelli testified that uploading documents is easy and he was “baffled that she couldn’t do it.” After the hearing, an attorney for the Department of Health recommended removing Colterelli from the program. The alleged “major violation” directly impacts the safety of every patient he encounters, the attorney said.

Still, Rand noted that the department didn’t allege that he routinely did not check patient health records and it did not dispute that a certification was proper for someone with Grey’s medical condition. Jack Rothman told the Florida Board of Medicine that Veriheal offered him this deal: The company would refer patients to him and pay him $55 for every one he approved. But if Rothman determined the patient didn’t qualify, he would be paid nothing.

Veriheal and Bloom’s company both offer money-back guarantees to patients if they aren’t approved. But Bloom said he pays his doctors based on an hourly rate regardless of how many patients they see or the outcome of the evaluation.

 

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