False CarePay contract blamed for Cayman hospitals’ $90M in outstanding patient debt

Four senior medical and civil service officials have been placed on CaymanIsland’s Health Services Authority, which oversees Cayman’s public hospital network, to help “avoid the mistakes of the past,” reports Cayman Compass.

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Board operations fell into disrepute earlier this year when former HSA chairman Canover Watson was convicted of conspiracy to defraud the government by submitting false contracts to various government agencies. The scheme resulted in $1.8 million in payouts for nonexistent healthcare contracts, according to the article.

Most prominent among the false contracts was a bogus agreement to implement CarePay’s payment processing system at HSA hospitals. Auditors said the failure to implement the payment processing system has significantly affected HSA’s ability to collect overdue patient bills.

HSA faces about $90 million in outstanding accounts receivable aged more than a year. On Sept. 8, HSA said it will begin suing patients and businesses with medical debts to retrieve about $10 million.

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