Texas physician settles fraud allegations for nearly half a million dollars, agreeing to cooperate with ongoing investigations into illegal kickbacks and fraudulent Medicare claims involving hospice care certification
El Paso, Texas – A Texas physician has agreed to pay nearly half a million dollars to resolve allegations of fraud involving federal healthcare programs. Dr. John Patterson, a practicing physician in El Paso, will pay $468,626 to settle claims that he received illegal kickbacks in exchange for improperly certifying patients for hospice care.
According to the Department of Justice, Dr. Patterson worked with Nursemind Home Care Inc., a hospice care provider in El Paso, to falsely certify patients as eligible for hospice services under Medicare. These patients, officials claim, did not meet the necessary criteria for such care. By doing so, Patterson allegedly contributed to the submission of fraudulent claims to federal healthcare programs, costing taxpayers thousands of dollars.
Federal authorities emphasized that such fraudulent actions not only drain healthcare resources but also manipulate the medical decision-making process.
“My office will hold providers accountable, both through the civil and criminal process, when they attempt to defraud federal healthcare programs and the American taxpayer,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas.
As part of the settlement, Dr. Patterson has agreed to cooperate with an ongoing criminal investigation. His cooperation includes providing testimony in any resulting criminal prosecutions. Because of this, he was granted “cooperation credit” under the Justice Department’s guidelines, which consider voluntary disclosure, cooperation, and remediation in False Claims Act cases.
The investigation into the fraudulent hospice certification scheme has already led to criminal charges against Zenia Chavez, the owner of Nursemind Home Care Inc. Chavez pleaded guilty to conspiracy to commit illegal remunerations in connection with a federal healthcare program. The case underscores how fraudulent financial arrangements undermine the integrity of Medicare and other federal healthcare programs.
Federal agencies involved in the case stressed the broader implications of such schemes. Jason E. Meadows, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General, condemned the fraud, stating that improperly placing Medicare recipients into hospice care can have severe emotional and medical consequences.
“The emotional toll it takes on Medicare recipients and their families to be placed on hospice when it is not appropriate is reprehensible,” he said.
FBI El Paso also weighed in on the case, with Special Agent in Charge John Morales highlighting the severity of Dr. Patterson’s actions.
“He violated his oath as a physician to fight against healthcare fraud and waste. Today’s civil settlement shows how steadfastly committed the FBI El Paso Healthcare Fraud and Financial Crimes Task Force is in protecting the integrity of the Medicare Program, which is vital to the health and well-being of individuals in need of their services,” Morales said.
Assistant U.S. Attorney Eduardo Castillo handled the civil settlement on behalf of the federal government. Meanwhile, Assistant U.S. Attorneys Chris Skillern and Debra Kanof led the criminal prosecution against Chavez.
Despite the settlement, the claims against Dr. Patterson remain allegations, and there has been no official determination of liability. The case serves as a stark reminder that federal authorities continue to aggressively pursue healthcare fraud, holding medical professionals accountable for their actions.
