Healthcare CEO gets 10 years for fraud that led to 2 patient deaths

The CEO and co-owner of a Maryland diagnostics company has been sentenced to 10 years in prison for charges related to healthcare fraud resulting in the deaths of patients, according to the Department of Justice.

In February, a federal jury convicted 67-year-old Rafael Chikvashvili, PhD, of two counts of healthcare fraud that resulted in death. Dr. Chikvashvili was the co-owner and CEO of Owings Mills, Md.-based alpha Diagnostics, which was a portable diagnostic services providers, principally of X-rays.

According to evidence presented at trial, Dr. Chikvashvili was involved in a scheme to defraud Medicare and Medicaid. He and others allegedly conspired to create false radiology, ultrasound and cardiologic interpretation reports. He also allegedly submitted insurance claims for medical examination interpretations that were never completed by licensed physicians, according to the DOJ.

Dr. Chikvashvili allegedly instructed his nonphysician employees to interpret X-rays, ultrasounds and cardiologic examinations, which, according to testimony provided at trial, ultimately resulted in two patient deaths due to the employees' incompetence to accurately diagnose them.

In one case, an Alpha employee who was not a physician reviewed X-ray images and failed to detect congestive heart failure. As a result, the patient was not transferred to an acute care facility and died four days later. In the second case, an Alpha employee misread a patient's pre-operation X-ray and failed to detect congestive heart failure, which put the patient at an increased risk of bleeding during and after an upcoming elective surgery. Due to the misinterpretation, the patient was cleared for surgery, experienced significant bleeding, and died six days after her chest X-ray was misread.

Dr. Chikvashvili and his co-conspirators allegedly defrauded Medicare and Medicaid of more than $6 million through the scheme, which occurred from 1997 through 2013, according to the DOJ.

In addition to healthcare fraud, Dr. Chikvashvili was also found guilty of wire fraud, false statements and aggravated identity theft.

More articles on healthcare industry lawsuits:

Former Calif. senator admits accepting bribes from ex-hospital CEO
FTC can't block Advocate-NorthShore merger, judge rules
Washington hospital CEO ordered to admit patient or go to jail

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