A grand jury subpoena naming a wound care practice signals that federal investigators believe a crime may already have occurred, not merely that billing data looks unusual. The grand jury's function, under the Department of Justice's own Justice Manual, is to determine whether probable cause exists that a federal offense was committed. The subpoena is a legal command to produce patient records, billing files, or testimony, and it triggers a preservation duty the moment it arrives. What the practice does in the first hours, and who it tells, shapes the record investigators will later read.
What a Grand Jury Subpoena Means
This guide addresses subpoenas issued directly from a federal grand jury, one strand within the broader wound care audit defense landscape that also includes CMS prepayment review and OIG subpoenas.
A grand jury subpoena is a criminal investigative tool. It differs from a civil investigative demand, the device federal prosecutors use to investigate civil False Claims Act liability without yet convening a grand jury. A wound care practice served with a grand jury subpoena, rather than a civil investigative demand, should treat the matter as a criminal inquiry from the outset, even absent an accompanying target letter and even where the practice is confident its billing complies with program rules.
Wound care practices operating mobile or multi-location models face a related and broader federal review pattern; see our analysis of Mobile Wound Care Practices Under Federal Review for that enforcement trend.
The Duty to Preserve Records
Receipt of a grand jury subpoena creates an immediate duty to preserve every record it describes, along with closely related material not yet requested. Federal law criminalizes the knowing destruction, alteration, or concealment of a record with intent to obstruct a federal investigation under 18 U.S.C. § 1519, and separately criminalizes corruptly altering or destroying a record with intent to impair its availability for an official proceeding under 18 U.S.C. § 1512(c). Section 1512 does not require that a proceeding be pending, or even about to be instituted, at the time of the conduct. Both carry a maximum penalty of 20 years in federal prison. Routine retention policies, including automatic email deletion and backup rotation, must be suspended the moment a subpoena arrives, and that suspension belongs in writing.
The obstruction statutes do not wait for an indictment. A wound care practice can create new criminal exposure through what it does after the subpoena arrives, independent of whatever the underlying investigation ultimately finds.
What the Subpoena Requires You to Do
Grand jury secrecy under Federal Rule of Criminal Procedure 6(e) binds grand jurors, government attorneys, and court personnel. It does not bind the witness or the business that receives the subpoena. The rule's advisory committee notes describe imposing secrecy on a witness as an unnecessary hardship that could keep a witness from consulting counsel. A wound care practice served with a grand jury subpoena is free, and well advised, to retain healthcare defense counsel immediately and to discuss the subpoena's contents with that counsel.
A subpoena to produce documents is governed by Federal Rule of Criminal Procedure 17(c), which allows a recipient to move promptly to quash or modify the subpoena if compliance would be unreasonable or oppressive. Counsel may also negotiate the subpoena's scope and production timing directly with the U.S. Attorney's Office rather than moving to quash it. Either path requires counsel who has reviewed the full subpoena before a single document leaves the practice.
Health Law Alliance's attorneys have overseen 2,000+ audits and handled 5,000+ matters, with 25+ years of experience.
Why Early Legal Counsel Is Critical
It is critical that wound care practices promptly retain experienced healthcare defense counsel upon receiving a grand jury subpoena, audit notice, investigative request, or other government inquiry. Early legal intervention can protect the practice's rights, ensure appropriate responses to government requests, avoid inadvertent admissions, preserve relevant defenses, and allow counsel to communicate with investigators on the practice's behalf. Delaying legal representation can significantly affect the outcome of a matter and expose the practice and its owners to unnecessary risk.
How Health Law Alliance Can Help
Health Law Alliance defends wound care practices, physicians, and healthcare companies that have received a grand jury subpoena, from the first call to the U.S. Attorney's Office through any eventual charging decision. Our attorneys bring former prosecutors to the defense side of these investigations. If your practice has received a grand jury subpoena, our criminal healthcare fraud defense team is available for a free, confidential consultation.
