Miami Hospital COO Pleads Guilty in $67M Mental Health Fraud

Christopher Gabel, 61, the former Chief Operating Officer (COO) of Hollywood Pavilion LLC in Miami, has pleaded guilty to conspiracy to commit health care fraud and conspiracy to defraud the United States. The scheme involved submitting over $67 million in fraudulent claims to Medicare by a psychiatric hospital in Hollywood, Florida.

According to Gabel’s admissions, from April 2003 to September 2012, Hollywood Pavilion LLC billed Medicare for treatments that were neither medically necessary nor provided to patients. He supervised staff at both the hospital’s inpatient and outpatient facilities, admitting Medicare beneficiaries regardless of their qualification for mental health treatment.

Under Gabel’s direction, patient brokers were paid bribes and kickbacks, with instructions to falsify invoices and marketing reports to hide these activities. From 2003 to August 2012, Hollywood Pavilion LLC billed nearly $67 million for non-rendered services, billing Medicare approximately $40 million.

Four other individuals were convicted in June 2013: Karen Kallen-Zury was sentenced to 25 years; Daisy Miller, 15 years; Michele Petrie, six years; and Christian Coloma, 12 years. They were also ordered to pay substantial restitution totals.

This case is part of the Medicare Fraud Strike Force, which has charged nearly 2,000 defendants since its inception in 2007. The HHS Centers for Medicare & Medicaid Services are working with the Health Care Fraud Prevention and Enforcement Team (HEAT) to combat fraudulent providers and increase accountability.

For more information on health care fraud prevention, visit www.stopmedicarefraud.gov.