in Houston, Texas
More Medicare fraud allegations; Houston hospital chief latest nabbed in crackdown
Thursday, Feb 09, 2012, 07:20PM CST
By Mark Lisheron

Further establishing that there are no unaccountable federal programs only bad people, authorities have charged a Houston clinic administrator with $116 million in Medicare fraud.

Mohammed Khan’s alleged con was to pay elderly and disabled care operators to recruit residents for the mental health clinics he oversaw through Riverside General Hospital, a story today by the Houston Chronicle says.

With an added entrepreneurial flourish, Khan lured recruits into therapy giving away coupons for merchandise at several “country stores” at Riverside Hospital and handing out cigarettes and food, the indictment says.  

Khan and several unnamed co-conspirators submitted $116 million in claims to Medicare for treatment that wasn’t medically necessary and sometimes not provided at all, the indictment says.

For this federal authorities charged Khan with seven counts of conspiracy to commit health care fraud and health care kickback conspiracy.

Khan’s arrest is the latest in a federal crackdown on Medicare and Medicaid fraud called for nearly two years ago by President Obama.

Restrictions on Medicare claims data were eased as a tool for pursuing fraud late last year after an investigation by the Wall Street Journal led to arrests in Dallas and Houston almost a year ago in the broadest Medicare fraud roundup in U.S. history.

Contact Mark Lisheron at 512-299-2318 or or on Twitter at @marktxwatchdog.

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Thursday, 02/09/2012 - 09:18PM

it is about time people are looking at the mental health system who is truly out of control , and charging and using Medicare and Medicaid patients as a tool. it is like a fountain with endless water... and I do hope they will continue to look at and examine, how Mental Health hospitals recruit patients , not only for inpatient hospitals but for their partial hospital treatments...although, there are a few good places...most are just a total waste of funding... Our government needs to open social day centers for the mentally ill instead of paying millions to the partial hospital treatment centers...

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