DOJ wraps up $189M Medicare fraud scam with executives’ sentencing

The U.S. Attorney’s Office for the Southern District of Texas announced Friday the final four sentences of a $189 million Medicare fraud scam dating back about a decade.

Bobby Rouse, Steven Houseworth, Jeffery Parsons and David Edson all served on the executive team of Continuum Healthcare, which owned Houston’s Westbury Community Hospital and other mental health centers in the surrounding area.

These locations each operated a partial hospitalization program intended to provide less-than-24-hour daily behavioral care resembling that of a short-term hospital inpatient program.

The four executives were responsible for day-to-day operations at these locations and were involved in kickback programs where “numerous people” were referred for treatment for which they did not qualify, the Department of Justice (DOJ) wrote in an announcement. The “vast majority” of those referred were not experiencing an acute psychotic episode, the DOJ wrote, or instead had a different mental health condition.

Source: DOJ wraps up $189M Medicare fraud scam with executives’ sentencing / Fierce Healthcare

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