Ex-Florida hospital CEO indicted in $1M scheme

A 28-count indictment unsealed May 2 charges the former CEO of Blountstown, Fla.-based Calhoun Liberty Hospital with defrauding the hospital of more than $1 million over a five-year period, according to the Tallahassee Democrat.

Phillip E. Hill Jr. resigned as Calhoun Liberty's CEO in 2015 due to "management differences." About a month after he resigned, the new administration of the hospital allegedly found bookkeeping irregularities. They accused Mr. Hill of creating fake invoices for payments to Southeastern Medical Supply, a Tallahassee, Fla.-based shell company Mr. Hill allegedly created to embezzle funds from the hospital between 2010 and 2015.

Those same allegations appear in the indictment filed in U.S. District Court for the Northern District of Florida in Panama City. The indictment also alleges Mr. Hill created fake invoices charging the hospital prices exceeding what was actually paid for medical supplies ordered from vendors, according to the report.

"Southeastern was a sham business that provided no medical supplies and existed only as a name associated with a bank account, a UPS mailbox and invoices [Mr. Hill] submitted to the hospital," U.S. attorneys wrote in the indictment.

Mr. Hill is charged with 24 counts of wire fraud and four counts of filing false income taxes. His trial is scheduled for July 2.

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