Shelby CFO Admits EHR Scam: $785K Stolen

TYLER, TX – A brazen scheme to bilk Medicare out of nearly $800,000 has landed a former hospital CFO in hot water. Joe White, 67, of Cameron, Texas, admitted in federal court to lying about his hospital’s compliance with electronic health record requirements, netting Shelby Regional Medical Center a hefty, undeserved payout.

White, formerly the Chief Financial Officer at Shelby Regional Medical Center in Center, Texas – a facility owned and operated by Dr. Tariq Mahmood – was responsible for securing incentive payments through Medicare’s Electronic Health Record (EHR) Incentive Program. The program rewards hospitals for adopting and meaningfully using electronic health records. White, however, allegedly cut corners, falsely attesting to “meaningful use” when the hospital hadn’t met the criteria.

The lie, presented before U.S. Magistrate Judge John D. Love on November 12, 2014, proved profitable. As a direct result of White’s false statement on November 20, 2012, Shelby Regional Medical Center received a staggering $785,655.00 from Medicare funds. The scheme was uncovered and White was subsequently indicted by a federal grand jury on February 6, 2014.

This wasn’t just an accounting error; it was a deliberate act of deception. White knowingly misrepresented the hospital’s capabilities, exploiting a program designed to improve healthcare through technology for personal and institutional gain. Investigators from the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the Federal Bureau of Investigation (FBI) worked together to unravel the fraud.

Now, White faces the music. He’s looking at up to five years in federal prison at sentencing, though a date has yet to be set. Special Assistant U.S. Attorney Kenneth C. McGurk and Assistant U.S. Attorney Nathaniel C. Kummerfeld are prosecuting the case, ensuring White is held accountable for his actions. This case sends a clear message: defrauding Medicare isn’t a victimless crime, and those who attempt it will face federal prosecution.

Authorities urge anyone with information about healthcare fraud to come forward. The Department of Health and Human Services’ fraud hotline can be reached at 1-800-HHS-TIPS (447-8477). Silence only emboldens those who prey on the system and divert vital resources from legitimate healthcare needs.