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Wed Oct 30, 2019, 01:30 AM

Former Missouri Hospital Executive Pleads Guilty to Pass-Through Billing Scheme that Caused Over

Former Missouri Hospital Executive Pleads Guilty to Pass-Through Billing Scheme that Caused Over $100 Million in Losses


The former CEO of a Missouri hospital pleaded guilty today for his role in a pass-through billing scheme in which the hospital was used to submit fraudulent claims for toxicology and blood testing, resulting in multiple insurance companies and the Missouri Medicaid program paying over $100 million in claims.

Assistant Attorney General Brian A. Benczkowski of the Justice Departmentís Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, U.S. Attorney Timothy A. Garrison of the Western District of Missouri, Special Agent in Charge Rachel Rojas of the FBIís Jacksonville Field Office, Special Agent in Charge Timothy R. Langan Jr., of the FBIís Kansas City Field Office, Deputy Assistant Inspector General for Investigations Thomas W. South of the U.S. Office of Personnel Management Office of the Inspector General (OPM-OIG), Special Agent in Charge Rafiq Ahmad of the U.S. Department of Labor-Office of Inspector General (DOL-OIG) and Special Agent in Charge Basil P. Demczak of the Amtrak Office of Inspector General (Amtrak-OIG) made the announcement.

David Lane Byrns, 62, of Lighthouse Point, Florida, the former CEO of Putnam County Memorial Hospital (Putnam), of Unionville, Missouri, pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida to a one-count information charging him with conspiracy to commit health care fraud. The information was filed in the Western District of Missouri and the case was transferred to the Middle District of Florida by consent for the entry of Byrnsí plea. As part of his guilty plea, Byrns agreed to a forfeiture judgment of $5,100,000. Sentencing before U.S. District Judge Timothy Corrigan of the Middle District of Florida has not yet been scheduled.

According to admissions made as part of his guilty plea, in 2016, Byrns and another individual took control of Putnam, a rural hospital in Missouri, through a management agreement with the hospitalís board, and Byrns was installed as the hospitalís CEO. Byrns and others, including a laboratory owner, then arranged for urine drug tests (UDTs) and blood tests to be performed on a massive scale at diagnostic testing laboratories outside Missouri, on behalf of individuals who were not Putnam patients and who otherwise had no connection to Putnam. To obtain samples for testing, Byrns and his co-conspirators entered into arrangements with marketers, who solicited samples from substance abuse treatment centers, sober living homes, physiciansí offices and other sources throughout the United States, in exchange for a portion of the insurance reimbursements. Many of the tests conducted were medically unnecessary. Byrns and his co-conspirators billed the tests to private insurers and to the Missouri Medicaid program using Putnamís billing credentials, in order to take advantage of Putnamís favorable reimbursement rates under its in-network contracts with the insurers, while failing to identify the fact that most testing had not taken place at Putnam, Byrns admitted.

Read more: https://www.justice.gov/opa/pr/former-missouri-hospital-executive-pleads-guilty-pass-through-billing-scheme-caused-over-100

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Reply Former Missouri Hospital Executive Pleads Guilty to Pass-Through Billing Scheme that Caused Over (Original post)
TexasTowelie Oct 30 OP
Indykatie Oct 30 #1

Response to TexasTowelie (Original post)

Wed Oct 30, 2019, 02:00 AM

1. Crooks Got Away with $100 Million and He Only Is Giving up $5 Million of His Take

That's a crime itself. This was a massive fraudulent scheme that had to involve dozens of people at least.

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