Corporate Compliance

Houston assistant administrator indicted for Medicare fraud scheme

Compliance Monitor, February 15, 2012

Mohammed Khan, an assistant administrator at a Houston-area hospital, was charged with one count of conspiracy to commit healthcare fraud, one count of conspiracy to pay and receive illegal healthcare kickbacks, and five counts of paying or offering to pay healthcare kickbacks for his involvement in a $116 million Medicare fraud scheme, according to a February 8 Department of Justice press release.

Since 2008, Khan paid kickbacks to patient recruiters, owners of group care homes, and operators of assisted living facilities in exchange for sending ineligible Medicare beneficiaries to the hospital’s partial hospitalization program, according to the indictment. Khan also paid kickbacks to the ineligible Medicare beneficiaries in exchange for their compliance. Medicare was billed approximately $116 million for services that were not medically necessary or were never provided.

Read more on the Department of Justice website.