By Juan A Lozano and Nomaan Merchant
Dallas - A Texas doctor has been charged with running a massive health
fraud care scheme with thousands of fraudulent patients and
intermediaries allegedly offering cash, food stamps or free groceries,
to bilk Medicare and Medicaid of nearly $375 million.
A
federal indictment unsealed Tuesday charges Jacques Roy, a doctor who
owned Medistat Group Associates in DeSoto, Texas, and six others in an
alleged scheme to bill Medicare for home health services that were not
properly billed, not medically necessary or not done.
The scheme was the largest dollar amount by a single doctor uncovered by a task force on Medicare fraud, authorities said.
U.S.
Attorney Sarah Saldana accused Roy of "selling his signature" to home
health agencies that rounded up thousands of patients' names and billed
Medicare and Medicaid for five years.
The
indictment alleged that from January 2006 through November 2011, Roy or
others certified 11,000 Medicare beneficiaries for more than 500 home
health service agencies — more patients than any other medical practice
in the U.S. More than 75 of those agencies have had their Medicare
payments suspended.
Roy,
54, is charged with several counts of health care fraud and conspiracy
to commit health care fraud. He faces up to 100 years in prison if
convicted on all counts. He appeared briefly in court Tuesday and is
scheduled to have a detention hearing Wednesday. Authorities also moved
to seize cash in Roy's bank accounts, cars and two sailboats.
His
attorney, Patrick McLain, said authorities had contacted Roy months
ago. McLain said it was too soon to comment on the case because
prosecutors hadn't provided him with most of the evidence yet. Phone
messages and emails left with Medistat, located just south of Dallas,
were not immediately returned Tuesday.
The
attorney for one of the home health agency owners, Cynthia Stiger,
alleged to be part of the scheme called the charges and the dollar
amounts listed overblown. Stiger pleaded not guilty Tuesday.
"They're not anywhere close to accurate," said Jeffrey Grass, Stiger's attorney.
Investigators
for the U.S. Health and Human Services department noticed
irregularities with Roy's practice about one year ago, officials said.
Roy
had "recruiters" finding people to bill for home health services, said
Saldana, the top federal prosecutor in Dallas. Some of those alleged
patients, when approached by investigators, were found working on their
cars and clearly not in need of home healthcare, she said.
Medicare
patients qualify for home health care if they are confined to their
homes and need care there, according to the indictment.
Saldana
said Roy used the home health agencies as "his soldiers on the ground
to go door to door to recruit Medicare beneficiaries."
"He was selling his signature," she said.
For
example, authorities allege Charity Eleda, one of the home health
agency owners charged in the scheme, visited a Dallas homeless shelter
to recruit homeless beneficiaries staying at the facility, paying
recruiters $50 for each person they found. A message was left Tuesday at
Eleda's Dallas-based company, Charry Home Care Services, Inc.
Others
indicted are accused of offering free health care and services such as
food stamps to anyone who signed up and offered their Medicare number.
Roy
would "make home visits to that beneficiary, provide unnecessary
medical services and order unnecessary durable medical equipment for
that beneficiary," the indictment alleged. "Medistat would then bill
Medicare for those visits and services."
The
indictment says Roy's business manager — identified only by his
initials — recorded conversations between the two in January 2006. The
business manager heard Roy describe his alleged scheme and refuse to
market for patients in a legitimate way, the indictment said.
The
Centers for Medicare and Medicaid Services also announced the
suspension of an additional 78 home health agencies associated with Roy.
The agencies were collecting about $2.3 million a month, said Peter
Budetti, CMS' deputy administrator for program integrity.
The
alleged fraud went unnoticed for several years. After CMS suspended
Medicare provider accounts belonging to Roy and Medistat last July,
Medistat's employees allegedly started billing Medicare under a
different provider number under Roy's supervision, authorities said.
Until
recently, HHS could not effectively track data to identify the kind of
fraud now linked to Roy, who was billing beneficiaries "off the charts"
for more than five years, officials said. The department's inspector
general, Dan Levinson, told reporters the department's technology "has
not come online as quickly as we'd like to see."
The
department is now beefing up its data analysis and tracking other
cases, Levinson said. It has also established task forces in several
U.S. cities to track Medicare fraud, officials said.
"We're
now able to use those data analytic tools in ways — in 2012 and 2011 —
that no, we really could not have done in years past," Levinson said.
A
spokesman for Trailblazer Health Enterprises, which paid home health
claims through a contract with federal authorities, did not return a
phone message Tuesday.
Health
care fraud is estimated to cost the government at least $60 billion a
year, mainly in losses to Medicare and Medicaid. Officials say the fraud
involves everything from sophisticated marketing schemes by major
pharmaceuticals encouraging doctors to prescribe drugs for unauthorized
uses to selling motorized wheelchairs to people who don't need them.
"These are public programs, and we must protect them for future generations," Saldana said.
