Dr. Mahmood is the former owner of several hospitals, including Cozby German Hospital in Grand Saline, Central Texas Hospital in Cameron and Community General Hospital in Dilley.
A federal grand jury indictment was issued against Dr. Mahmood in April 2013, charging him with conspiracy to commit healthcare fraud and seven counts of healthcare fraud.
According to the indictment, Dr. Mahmood changed, deleted and incorrectly sequenced diagnostic codes in a way that did not reflect the actual diagnoses and conditions of patients and subsequently submitted false claims to Medicare and Medicaid for those services.
In April, the court set Dr. Mahmood’s trial for May 12. However, just a few days before his trial was to begin, Dr. Mahmood entered into a deal with prosecutors that involved him pleading guilty to the charge of conspiracy to commit healthcare fraud.
Dr. Mahmood rescinded his guilty plea at a hearing on May 12 and also hired a new attorney to represent him at trial. At the hearing, Dr. Mahmood requested a 90-day trial delay that the judge denied, instead allowing for a shorter extension.
Dr. Mahmood will be sentenced next spring, and he faces up to 20 years in prison.
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