Texas hospital owner convicted in $20M healthcare fraud scheme

A federal jury convicted a physician and the owner of a Houston hospital of conspiracy to commit healthcare fraud, 17 counts of healthcare fraud and three counts of money laundering, according to the Department of Justice.

According to evidence presented at trial, Harcharan Narang, MD, who practiced at and owned North Cypress Clinical Associates in Houston, and Dayakar Moparty, who operated Red Oak Hospital in Houston, submitted false claims to Medicare and private payers. The fraudulent claims were for medically unnecessary tests or medical tests that were never provided.

Dr. Narang and his co-conspirators also allegedly falsified home health patient assessment forms to receive higher reimbursement from health insurers, including Aetna, Cigna and Blue Cross Blue Shield. Mr. Moparty instructed his employees to falsely bill the medical services at Red Oak Hospital, when the patients never received services from the hospital, according to the Justice Department.

Dr. Narang and Mr. Moparty are scheduled to be sentenced June 20. They face up to 10 years in prison for each count of healthcare fraud and up to 20 years in prison for each count of money laundering.

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