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Texas
Related: About this forum(Many) Affiliated with Forest Park Medical Center (FPMC) in Dallas Indicted in Massive Conspiracy
https://www.justice.gov/usao-ndtx/pr/executives-surgeons-physicians-and-others-affiliated-forest-park-medical-center-fpmcDepartment of Justice
U.S. Attorneys Office
Northern District of Texas
FOR IMMEDIATE RELEASE
Thursday, December 1, 2016
Executives, Surgeons, Physicians, and Others Affiliated with Forest Park Medical Center (FPMC) in Dallas Indicted in Massive Conspiracy
FPMC Paid Approximately $40 Million in Bribes and Kickbacks in Exchange for Patient Referrals
DALLAS Founders and investors of the physician-owned Forest Park Medical Center (FPMC) in Dallas, other executives at the hospital, and physicians, surgeons, and others affiliated with the hospital, have been charged in a federal indictment, returned by a grand jury in Dallas last month and unsealed today, with various felony offenses stemming from their payment and/or receipt of approximately $40 million in bribes and kickbacks for referring certain patients to FPMC. The announcement was made this afternoon by U.S. Attorney John Parker of the Northern District of Texas.
FPMC was an out-of-network hospital. According to the indictment, the referred patients were primarily ones with high reimbursing out-of-network private insurance benefits or benefits under certain federally-funded programs. FPMCs owners, managers, and employees also attempted to sell patients with lower reimbursing insurance coverage, namely unwitting Medicare and Medicaid beneficiaries, to other facilities in exchange for cash. As a result of the bribes, kickbacks, and other inducements, from 2009 to 2013, FPMC billed such patients insurance plans and programs well over half of a billion dollars and collected over $200 million in paid claims.
(snip)
FPMC was founded by Beauchamp, Toussaint, Barker, Burt, and others as an out-of-network hospital; as such, it was free to set its own prices for services and was generally reimbursed at substantially higher rates than in-network providers. FPMCs strategy was to maximize profit for physician investors by refusing to join the networks of insurance plans for a period of time after its formation, allowing its owners and managers to enrich themselves through out-of-network billing and reimbursement.
(snip)
The bribes and kickbacks resulted in victim plans and programs being billed well over half of a billion dollars, including more than $10 million to the Department of Defense healthcare program TRICARE, more than $25 million to the Department of Labor FECA healthcare program, and more than $60 million to the federal employees and retirees FEHBP healthcare program, and FPMC collecting more than $200 million in tainted and unlawful claims.
Each of the 21 defendants is charged with one count of conspiracy to pay and receive health care bribes and kickbacks; the maximum statutory penalty upon conviction is five years in federal prison and a $250,000 fine.
(snip)
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(Many) Affiliated with Forest Park Medical Center (FPMC) in Dallas Indicted in Massive Conspiracy (Original Post)
nitpicker
Dec 2016
OP
TexasTowelie
(112,127 posts)1. Coverage from the Fort Worth Star-Telegram: