An indictment says Dr. Mahmood conspired to defraud federal health insurance programs by instructing employees to alter diagnostic codes in Medicare and Medicaid billings. Dr. Mahmood is accused of obtaining $375,000 in false reimbursements, according to the report.
Dr. Mahmood was arrested Tuesday and released on bond. He has been ordered to not leave Texas. His attorney says Dr. Mahmood denies all charges, according to the report. Dr. Mahmood faces seven counts of fraud in addition to the conspiracy charge.
Texas shut down Renaissance Hospital Terrell in February due to patient safety failures.
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