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Florida Substance Abuse Center Owner Gets 27 Years for Multi-Million Dollar Fraud Scheme

By George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law

On May 17, 2017, a Florida man who pled guilty to running a health care fraud scheme out of substance abuse treatment facilities he owned was sentenced to 27 years in prison. U.S. District Judge Donald M. Middlebrooks, handed down the sentence to Kenneth Chatman who pled guilty in March 2017 to conspiracy to commit health care fraud, conspiracy to commit money laundering and one count of sex trafficking conspiracy.

Chatman admitted making millions of dollars by taking bribes and kickbacks to treat patients, fraudulently billing insurance companies and providing drugs to addicts so they would relapse in order to seek more treatment. His wife, Laura Chatman, was also allegedly in on the fraud scheme.

Details of the Scheme.

According to prosecutors, Chatman bribed owners of other […]

Health Care Software Double-Bills Government For Anesthesia Services According to FCA Suit

By George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law

On November 2, 2017, a relator in a Florida federal False Claims Act (FCA) case, claimed that Epic Systems’ (Epic) health software wrongly defaults to double-billing for anesthesia services. As a result, the government is being overbilled by hundreds of millions of dollars, according to relator Geraldine Petrowski.

The Relator’s Allegations.

In an amended complaint, the relator alleges Epic billing software, used by hundreds of hospitals in the United States, defaults to charging for both the applicable “base units” for anesthesia provided on a procedure, as well as the actual time taken for the procedure. “This unlawful billing protocol has resulted in the presentation of hundreds of millions of dollars in fraudulent bills for anesthesia services being submitted to Medicare and Medicaid as false claims,” Petrowski said.

The relator […]

Nursing Home Chain Hit With $1.5 Million Verdict in Sex Discrimination Lawsuit as Jury Sides with Former Employee

By George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law

On November 2, 2017, a former elder care facility executive was awarded a $1.5 million verdict by a federal jury in Washington state. Irene Riggs claims she was fired for complaining about the “sexually charged” environment created by a supervisor’s inappropriate conduct with a nurse. After a three-day trial, the jury awarded her over $232,000 in lost wages up to the date of trial, nearly $802,000 in future lost wages and $500,000 for loss of enjoyment of life after she was fired by Tennessee-based Life Care Centers of America Inc. (Life Care).

Alleged Sex Discrimination.

In her suit, the plaintiff alleged that she was subjected to a “sexually charged atmosphere” by a regional vice president, who was her supervisor beginning in 2013, and a registered nurse with whom […]