PIKEVILLE, Ky. (KT) – A two-year investigation has led to federal health care fraud charges against the owner of rehabilitation facilities in eastern Kentucky.
Eugene Sisco III, 35, of Pikeville, the owner of several rehabilitation facilities in Pike, Floyd and Harlan counties, as well as a urine drug testing lab in Pike County, is accused of illegally charging patients cash for services that were covered by Medicaid and for which he had been fraudulently billing Medicaid.
According to a federal indictment, it is alleged that Sisco has received over $3,000,000 in cash paid to him by patients seeking treatment for addiction between 2016 and 2018. Federal search warrants were executed on five of Mr. Sisco’s businesses in February of 2020.
When questioned by employees at the facilities about having the patients pay cash, since the services were under Medicaid, the indictment states Sisco would lie and say services such as counseling or urine drug testing were not covered by Medicaid.