4 healthcare execs sentenced in $189M fraud scheme

Four executives at a hospital management company based in Texas were sentenced for their roles in a $189 million healthcare fraud scheme, the U.S. Justice Department said April 23.

Bobby Rouse, Steven Houseworth, Jeffery Parsons and David Edson were executives responsible for day-to-day operations at Continuum Healthcare, which owned Westbury Community Hospital in Houston and a network of mental health centers in Texas. 

Prosecutors say the executives were involved in the implementation of kickback programs in which people were referred for mental health treatment in exchange for payment. Prosecutors said the vast majority of patients didn't qualify for the mental health services or level of care provided at the health centers. 

As a result, Continuum Healthcare billed Medicare for about $189 million of fraudulent mental health claims. 

Mr. Rouse was sentenced to 10 years in prison. Mr. Houseworth was sentenced to four years in prison, and Mr. Parsons and Mr. Edison each received two and a half years.

Read more here.


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