Feds charge 91 people in $429M Medicare fraud
By PETE YOST | Associated Press – 4 hrs ago
WASHINGTON (AP) — A federal strike force has charged 91 people, including a hospital president, doctors and nurses, with Medicare fraud schemes in seven cities involving $429 million in false billings.
At a news conference Thursday, Attorney General Eric Holder said the case reveals an alarming trend in criminal efforts to steal billions of taxpayer dollars for personal gain. Holder called the action one of the largest such law enforcement efforts of its kind.
Health and Human Services Secretary Kathleen Sebelius said that that in addition to the newly announced criminal charges, her agency used new authority under the Obama administration's health care law to stop future payments to many of the health care providers suspected of fraud.
The law enforcement effort focused on fraudulent Medicare schemes in Baton Rouge, La.; Brooklyn, N.Y.; Chicago; Dallas; Houston; Los Angeles and Miami.
In Houston, a federal indictment charged the president of an unnamed hospital with participating along with six other people in $158 million in fraudulent billings for community mental health services.
In Dallas, two doctors and two registered nurses were charged with participating in over $103 million in false billings. In Brooklyn, a doctor and four chiropractors allegedly participated in $23 million in false billings.
U.S. charge 91 in $430 million Medicare fraud
By David Ingram and David Morgan | Reuters – 3 hrs ago
WASHINGTON (Reuters) - Ninety-one people including doctors, nurses and other medical professionals were charged criminally in a new sweep of Medicare fraud involving seven U.S. cities and $430 million in alleged false billing, officials said on Thursday.
It was the government's second big raid in recent months after a similar effort in May alleged $452 million in fraud in Medicare, the U.S. health program for the elderly and disabled.
The allegations include billing the government for unnecessary ambulance rides in California, writing prescriptions for patients in Dallas who did not qualify for them and paying kickbacks such as food and cigarettes to patients in Houston if they attended programs a hospital could later bill for.
The investigation is part of an effort by President Barack Obama's administration to find healthcare savings, an issue that also flared during Wednesday's debate between Obama and his Republican challenger, Mitt Romney.
Medicare, a $590 billion program that serves nearly 50 million people, is a primary pot of money for trying to find waste, fraud and abuse.
Indictments against the 91 defendants were unsealed on Thursday after a coordinated investigation led by the U.S. departments of Justice and of Health and Human Services, officials said. Most of the 91 surrendered or were arrested.
Those charged were relatively small-time operators who officials said tried to make a living defrauding Medicare and its sibling program, Medicaid, which insures the poor.
Health and Human Services Secretary Kathleen Sebelius said at a news conference that the sweep should "send a clear message to those perpetrating or contemplating Medicare and Medicaid fraud: It's time to start looking for another line of work."
The examples of fraud "drive up healthcare costs and jeopardize the strength of the Medicare program," said Attorney General Eric Holder, head of the Justice Department.
The government has improved its ability to detect fraud in real time, using software that evaluates reimbursement requests for potential irregularities, officials said.
Of the 91 people charged this week, 33 were involved in false billing in the Miami area. In separate cases, people were accused of improperly billing the government for home health services and mental health services.
Officials said they found an additional $42 million in improper claims at a Houston hospital, Riverside General, where they earlier said they found $116 million in fraud. That is where officials said there patients received cigarettes and other kickbacks if they attended a "partial hospitalization program." Some patients watched TV instead of receiving services there, the government said.
Riverside General's president was among seven employees facing charges on Thursday. "We're going all the way up and down," said Assistant Attorney General Lanny Breuer, head of the Justice Department's Criminal Division, at the news conference in Washington.
Later on Thursday, a Riverside General clerk read a statement by phone saying the hospital's board is "saddened as to the tactics utilized against this hospital" but supports its president, Earnest Gibson. The board is awaiting legal advice and had no further comment, she said.
The government expects to recoup at least some of what it considers lost money. In a Miami case, the government is restraining $4.6 million in assets including houses and bank accounts, Breuer said.
In addition to fraud and kickback charges, some of the defendants face allegations of identity theft and money laundering.
We used to complain that defence industries charged Pentagon outrageously.
For example, they charged $200 for a piece of bolt.
But the rage died down because the maker had to make one single bolt to the specification
of the defence department. The cost was understandably somewhat justified
even though it still left us a bad taste in our mouth.
Nowadays, the hospitals outdo the defence industries by many folds.
They would charge $200 for a shot of valium during anesthesia.
The drug company didn't have to make the valium from scratch.
And the hospital didn't have to go and search for miles to get it.
There's no justification on a charge like this.
The hospitals used to get paid from Medicare full amount of whatever they charged.
They realized they can charge any amount and it was unquestionably justified.
Not any more. Now, they should justify the charge and the net cost by the hospital.
Among the medical providers, the hospitals are probably one of the worst offenders.
Outpatient physical or psychiatric therapies and chiropractors may be one of them as well.
Once you go there, you never get discharged.
They keep the patient forever and bill the insurers repeatedly for dubious treatments.
Once we get into national health system, these kinds of things can be under better control.
I wish the law gives jail terms to these criminals who act and pretend like angels of the society.