Former Tenet Healthcare exec indicted in $400 million kickback scheme

Tenet to pay more than $513 million to resolve the criminal charges and civil claims.
By Bernie Monegain
11:54 AM

A former senior executive of Tenet Healthcare was indicted for his alleged role in a more than $400 million scheme to defraud the government, according to a Department of Justice news release posted February 1.

John Holland, 60, of Dallas, was charged in an indictment filed on Jan. 24 in the Southern District of Florida with mail fraud, healthcare fraud and major fraud against the United States.

Holland formerly served as a senior vice president of operations for Tenet Healthcare’s Southern States Region and as CEO of North Fulton Medical Center in Roswell, Ga.

The indictment alleges that between 2000 through 2013, Holland engaged in a scheme to defraud the government and the Georgia and South Carolina Medicaid Programs, by engineering bribes and kickbacks in return for the referral of patients to North Fulton Medical Center and other Tenet hospitals in the Southern States Region. The hospitals included Atlanta Medical Center, Spalding Regional Medical Center and Hilton Head Hospital.  

From about 2007 through 2013, Tenet maintained and operated an affiliated billing center in Boca Raton, Fla., that assisted in processing Medicaid billings for these hospitals.  

The Department of Justice charges Holland tried to conceal the scheme in various ways – by circumventing internal accounting controls and falsifying Tenet’s books, records and reports.  

The kickbacks and bribes helped Tenet bill the Georgia and South Carolina Medicaid Programs more than $400 million, and Tenet obtained more than $149 million in Medicaid and Medicare funds based on the resulting patient referrals, the indictment alleges.  

On Oct. 19, 2016, North Fulton Medical Center and Atlanta Medical Center Inc. pleaded guilty to conspiring to defraud the United States and to violate the Anti-Kickback Statute.

Tenet HealthSystem Medical Inc. and its subsidiaries entered into a non-prosecution agreement with the government, and agreed to pay more than $513 million to resolve the criminal charges and civil claims arising from the matter.

The Miami Herald reported February 1 Holland faces prosecution and, if convicted, he faces a potentially long prison sentence, and also U.S. authorities plan to seize his homes in Dallas and Park City, Utah. 

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