Corporate Compliance

Former hospital CEO convicted of six counts related to Medicaid fraud

Compliance Monitor, December 15, 2010

Ken B. Beverly, former CEO of Thomasville, GA–based Archbold Memorial Hospital, was convicted of six felony offenses related to Medicaid fraud and obstruction of justice, according to a Department of Justice (DOJ) press release.

The indictment charged Beverly with falsely portraying Archbold Memorial Hospital as a public hospital in order to qualify for additional Medicaid funds. In fact, Archbold is a private not-for-profit hospital. According to the DOJ, Beverly and former CFO William Sellers created fictitious documents showing the City of Thomasville Hospital Authority owned and controlled Archbold Memorial Hospital. Beverly then directed Sellers to send the documents to the Georgia Department of Community Health in order for the hospital to receive funds as a public hospital, according to the DOJ. 

The jury also convicted Beverly of two counts of witness tampering. According to the DOJ, Beverly offered to protect Sellers’ retirement benefits if Sellers remained silent about Beverly’s role in the conspiracy.

The jury also convicted Beverly of making misleading statements when questioned about the fraudulent documents during a civil disposition.

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