Thursday, 06 August 2020
Login |  Register 
 
Find Products or Services in your local community
 
MSC News National Headlines U.S Health Tech Talk World Business Sports Top Headlines
Former Horton Hospital head indicted
07/06/2020

(KNZA)--The former head of the company that oversaw the Horton Community Hospital at the time of its closing in March, 2019 has been indicted.

The indictment, unsealed June 29, alleges a $1.4 billion scheme to fraudulently conduct lab-billing.
60-year-old Jorge Perez, the former head of EmpowerHMS, and nine other defendants, are included in the indictment focused on four hospitals in Florida, Georgia, and Missouri. The Horton Community Hospital is not listed in the indictment.

A news release issued by the United States Department of Justice called it “a massive, multi-state scheme to use small, rural hospitals as a hub for millions of dollars in fraudulent billings of private insurers.”

The indictment, filed in U.S. District Court in Jacksonville, Florida, alleges that the conspirators would take over small, rural hospitals, often in financial trouble, using management companies they owned and operated.  The conspirators would then bill private insurance companies through the rural hospitals for millions of dollars of expensive urinalysis drug tests and blood tests, conducted mostly at outside laboratories they often controlled or were affiliated with, using billing companies that they also controlled.  While outside laboratories did most of the tests, the conspirators allegedly billed private insurance companies as if the tests were done at the rural hospitals.

According to the indictment, the rural hospitals had negotiated contractual rates with private insurers that provided for higher reimbursement than if the tests were billed through an outside laboratory.  The alleged scheme used the hospitals as a shell to fraudulently bill for such tests.  Further, the indictment alleges that the lab tests were often not even medically necessary.  The conspirators allegedly would obtain urine specimens and other samples for testing through kickbacks paid to recruiters and health care providers, often sober homes and substance abuse treatment centers.  The indictment also alleges that the conspirators engaged in sophisticated money laundering to promote the scheme and to distribute the fraudulent proceeds. 

According to the indictment, Perez, and the other defendants, received $400 million since 2015.

Perez is charged with one count of conspiracy to commit health care fraud and wire fraud, five counts of substantive health care fraud, one count of conspiracy to commit money laundering and substantive money laundering.

 

 

 

 

 

 

© Many Signals Communications
You will need to be logged in to leave a comment.
Please Login

characters left

The posting of advertisements, profanity, or personal attacks is prohibited.
Click here to review our Terms of Use.



MOST VIEWED STORIES
Election results
Thursday crash claimed one life
No serious injuries in 4-vehicle Brown Co wreck
One teen hurt, another arrested, in Tuesday shooting
Local virus cases impact counties
Two facing felony drug charges following search in Rulo
Four arrested in Richardson Co drug raid
$100,000 Powerball winner in NE KS
First COVID-19 death reported in Nemaha Co, KS
County leaves mask decision with schools
Consolidation of two local electric coops proposed
Teen seriously injured in wreck
USD 430 board approves new school start date
No serious injuries in 3-vehicle Jackson Co wreck
Goff man injured in Nemaha Co wreck
Tuesday is primary election day
Seven new Covid-19 cases in southeast Nebraska
Atchison Co confirms 62nd virus case
Start of school delayed for Jackson Co school districts
New virus case confirmed in area SE Neb counties

Click Here For All Stories


LATEST STORIES
Pawnee City Council sets public hearings
First COVID-19 death reported in Nemaha Co, KS
Missouri primary election results
Pawnee County stolen vehicle arrest
Enough signatures gathered in Humboldt mayor recall petition
Falls City Council approves hiring incentive for police officers
No serious injuries in 3-vehicle Jackson Co wreck
One teen hurt, another arrested, in Tuesday shooting
Goff man injured in Nemaha Co wreck
Election results
Click Here For All Stories

©2020 MSC News
Hiawatha, Ks 66434
EEO Public Report
KNZA - KLZA - KMZA - KTNC - KAIR
Powered by Radio Media Group
172.69.62.52