The former CEO of a now-closed Oklahoma hospital pleaded guilty May 26 to conspiracy charges involving five companies he owned, according to court records filed in the U.S. District Court for the Middle District of Florida.
Here are five things to know:
1. Madhukar Sharma, who served as CEO of Valley Community Hospital in Pauls Valley, Okla., pleaded guilty to one count of conspiracy to violate the federal anti-kickback statute and to illegally purchase Medicare beneficiary identification numbers, according to court documents reviewed by Becker’s.
Mr. Sharma became president of Valley Community Hospital in April 2022, according to his LinkedIn profile. The hospital closed Jan. 8, 2025, after reopening in 2021 following a three-year closure. It is unclear whether Mr. Sharma served as CEO up until the 2025 closure.
2. The plea agreement states that between February 2023 and July 2023, Mr. Sharma conspired with others to pay kickbacks to companies in exchange for lists of Medicare beneficiary identification numbers. His businesses then sent unsolicited COVID-19 rapid antigen tests to those beneficiaries and billed Medicare for the tests, which the beneficiaries had not requested, according to the agreement.
3. The five businesses named in the court documents — Ace Medical, Ace Biomedical Labs, Medical Specialists of Northeast Florida, Forensic Stat Laboratory and Southern Plains Medical Center of Garvin County — were enrolled by Mr. Sharma as Medicare participating providers. Three had their principal place of business in Jacksonville, Fla.
4. Mr. Sharma submitted approximately 340,553 fraudulent claims to Medicare totaling approximately $51.3 million, of which Medicare paid approximately $30.1 million, according to the plea agreement. Mr. Sharma has admitted to obtaining $30,092,852 as a result of the offense and surrendered $13.7 million to the government prior to sentencing.
5. Sentencing is scheduled for Aug. 24 before U.S. District Judge Wendy Berger in Jacksonville. The count carries a maximum penalty of five years in prison.
Becker’s has reached out to Mr. Sharma’s attorney and the U.S. Attorney’s Office for the Middle District of Florida and will update this story if more information becomes available.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.