Missouri hospital's ex-CEO pleads guilty to $114M billing scheme

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The former CEO of Unionville, Mo.-based Putnam County Memorial Hospital pleaded guilty Oct. 29 to a $114 million fraudulent billing scheme.

David Byrns, the former CEO, admitted that he submitted fraudulent claims for toxicology and blood testing services to insurers for patients who never visited Putnam County Memorial Hospital. 

The scheme resulted in multiple private insurers and Missouri Medicaid paying the hospital $114 million, which was shared among his co-conspirators. Prosecutors said billing companies and a Florida lab were involved in the scheme.

The scheme came to light in 2017 after a Missouri auditor raised concerns about a billing arrangement Mr. Byrns' company Hospital Partners set up with Putnam County Memorial Hospital.

Mr. Byrns pleaded guilty to one count of conspiracy to commit healthcare fraud.

Under his plea agreement, Mr. Byrns will forfeit $5.1 million. 

His sentencing has not yet been scheduled. 

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