Ex-Mississippi hospital manager on trial for potential Medicare fraud

The former owner and manager of a hospital in Mississippi is defending millions in income during a trial concerning allegations of Medicare fraud, according to the SunHerald.

Ted Cain and his wife, Julie Cain, are defendants in a lawsuit that alleges they overbilled Medicare and misallocated funds to increase their salaries at Stone County Hospital in Gulfport. Beginning in 2001, Mr. Cain owned and managed the 25-bed critical access hospital, which is now known as Memorial Hospital at Stone County.

Allegations of fraud were first brought against the Cains in a 2015 lawsuit joined by the Department of Justice. During a trial in early 2020, attorneys claimed the Cains' salaries were bloated, with the hospital paying Mr. Cain $15.2 million from 2004-13. The federal attorneys claimed Medicare reimbursed $10.4 million of that, according to the SunHerald, and are trying to recoup those funds plus damages.

Mr. Cain denies any wrongdoing. He argued he worked long hours managing the hospital as its owner and deserved the salary.

To read more, click here.

The original lawsuit can be found here.

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