no avatar

Former Johnson City cancer doctor will serve sentence at Alabama prison after pleading guilty in mislabeled medication case

Rex Barber • Jul 7, 2013 at 7:05 AM

Dr. William Kincaid, a former Johnson City cancer physician who pleaded guilty in federal court in December to misleading patients by receiving mislabeled cancer drugs, is to report to prison in less than three weeks.

U.S. Attorney Neil Smith confirmed to the Johnson City Press on Monday that the U.S. Marshal’s Service has ordered Kincaid to show up at The Federal Prison Camp in Montgomery, Ala., by July 23.

Kincaid was one of three physicians in the partnership that was McLeod Blood and Cancer Center in Johnson City. On Dec. 11, he entered a plea to “receiving in interstate commerce a misbranded drug with intent to defraud or mislead” before Judge Ronnie Greer.

FPC Montgomery is a minimum security facility for male prisoners, according to the Federal Bureau of Prisons website.

Greer sentenced Kincaid June 10 to two years in prison and imposed a $10,000 fine.

Kincaid is also to be on supervised release for one year after he serves his prison term.

There is no parole in the federal correctional system, so Kincaid will serve the entire 24 months.

The fine is in addition to part of a $4.5 million settlement that Kincaid and two other physicians formerly of McLeod Blood and Cancer have agreed to repay the U.S. government’s Medicare program and TennCare. Kincaid is responsible for 60 percent of the settlement.

Kincaid had asked for leniency in his sentencing hearing and his attorney Guy Blackwell presented nearly 160 character letters, including one from Washington County Sheriff Ed Graybeal and one from U.S. Rep. Phil Roe.

According to information in Kincaid’s plea agreement, the federal government claimed McLeod purchased $2 million worth of cancer medications from a company named Quality Specialty Products, located in Canada, but the drugs were not processed through an FDA-approved supplier.

The drugs cost less than the clinic was paying from FDA-approved suppliers in the U.S. and a decision was made for business manager Michael Combs to order the drugs in September 2007.

Later that year and in 2008, nurses raised concerns about the medications with foreign language on the labels. Shipments from QSP stopped but were resumed in 2009 with the drugs going to a storage business in which Kincaid had part ownership. These drugs were then mingled into the FDA-approved drugs at the cancer clinic.

Combs was sentenced April 1 in federal court to three years of probation. He was also assessed a $4,000 fine.

Read more on this case here.

Johnson City Press Videos