Former Texas CFO To Pay $4.4M for Meaningful Use Fraud

April 30, 2015 in News

The former CFO of a Texas hospital chain has agreed to pay about $4.4 million in restitution for his involvement in an effort to defraud the meaningful use program, Becker’s Hospital Review reports.

Under the 2009 economic stimulus package, health care providers who demonstrate meaningful use of certified EHRs can qualify for Medicaid and Medicare incentive payments (Ellison, Becker’s Hospital Review, 4/29).

Case Details

In November 2014, Shelby Regional Medical Center’s then-CFO Joe White pleaded guilty to falsely attesting to the meaningful use program during the 2012 full-year reporting period (iHealthBeat, 11/17/14).

White also pleaded guilty to aggravated identity theft for using a worker’s name to falsify documents for meaningful use funding.

According to KXXV News, the false statements led Shelby Regional Medical Center and other hospitals owned by Tariq Mahmood to receive nearly $17 million in meaningful use payments.

Mahmood was convicted in July of conspiracy to commit fraud, health care fraud and aggravated identity theft. Earlier this month he was sentenced to 11 years in prison (Gietzen, KXXV News, 4/29).

The Shelby Regional Medical Center has since closed, according to Politico‘s “Morning eHealth.”

White will be sentenced on May 27, and could receive seven years in federal prison (Gold et al., “Morning eHealth,” Politico, 4/30).

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