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Dallas Hospital Executives, Physicians Indicted for Bribes, Kickbacks

December 5, 2016

Nearly two dozen people associated with a bankrupt physician-owned North Dallas luxury hospital have been indicted in what authorities described as a massive bribery and kickback conspiracy.

The indictment unsealed on Dec. 1 in Dallas accuses 21 executives and physicians with Forest Park Medical Center of paying and taking bribes and kickbacks for patient referrals with high-reimbursement private medical insurance. Owners, managers and employees also are accused of trying to sell to other facilities for cash patients with lower-paying insurance, such as Medicare and Medicaid.

A U.S. attorney’s statement says bribes and kickbacks paid and received totaled about $40 million. The 20-count indictment alleges that such inducements resulted in hospital billings to elite insurance plans of “well over” $500 million from 2009 to 2013. That included more than $10 million to the Defense Department health care program, more than $25 million to the workers’ compensation program for federal employees, and more than $60 million from the federal employees’ and retirees’ health care program. In return, it received $200 million in claim payments.

Forest Park was an out-of-network hospital that could set its own prices and receive generally greater reimbursements.

The indictment also provides for the forfeiture of any property linked to the allegations.

The North Dallas hospital’s buildings have been sold to HCA North Texas for $125.4 million.

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