Lebanon Doctor Sentenced on Federal Drug Distribution Charges

Abingdon, VIRGINIA – A medical doctor who previously practiced in Lebanon, Va. was sentenced today to serve 151 months in federal prison following convictions on federal drug charges. First Assistant United States Attorney Daniel P. Bubar and the Office of the Virginia Attorney General made the announcement.

Dr. Dwight L. Bailey, 66, was convicted of 61 federal charges following a two-week jury trial in August of 2018. Evidence presented at trial proved that Bailey, who operated Family Healthcare Associates of Southwest VA and Ridgewood Health Care Clinic, illegally prescribed drugs to his patients.

“Dr. Bailey’s scheme to illegally prescribe opioids and other narcotics violated his patients’ trust and preyed on their addiction for his own financial gain.” First Assistant Bubar said today. “His lengthy sentence should send a strong message that our office and our federal and state partners will work tirelessly to prosecute those in healthcare who perpetuate the opioid epidemic by illegally diverting medication to harm their patients and damage the community.”    

Additional evidence showed that Baily, and other providers in his office, continually wrote prescriptions for opiates, benzodiazepines, and sleeping pills to patients who were clearly misusing, abusing, and diverting those controlled substances.  Most of the patients at Bailey’s clinic were receiving an opiate and/or a benzodiazepine.  Bailey’s income from his clinic and work at local emergency room topped $750,000 in a single year. 

Bailey was convicted of one count of conspiracy to distribute schedule II controlled substances without a legitimate medical purpose, one count of conspiracy to distribute schedule III controlled substances without a legitimate medical purpose, one count of conspiracy to distribute schedule IV controlled substances without a legitimate medical purpose, 24 counts of distribution of schedule II controlled substances without a legitimate medical purpose, three count of distribution of schedule III controlled substances without a legitimate medical purpose, 32 counts of distribution of a schedule IV controlled substances without a legitimate medical purpose, and one count of maintaining a place for the purpose of distributing controlled substances.

The investigation of the case was conducted by the Virginia Medicaid Fraud Control Unit and the Virginia State Police.  The case was prosecuted by Special Assistant United States Attorneys/Virginia Attorneys General Janine Myatt and Nicole S. Terry and Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.