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Ambulance Company Owner Sentenced for $249,539 Medicare and Medicaid Scam
Lexington, KY – In a shocking case of healthcare fraud, Hershel Jay (‘Jay’) Arrowood, owner of Arrow-Med Ambulance, Inc. in Breathitt County, has been sentenced for his role in a $249,539 scam targeting Medicare and Medicaid.
According to court documents, Arrowood, along with his wife Lesa Arrowood, Terry Herald, and Arrow-Med, submitted false claims to Medicare and Medicaid seeking payment for non-emergency ambulance transports. The transports, which took patients to and from a dialysis clinic in Jackson, KY, were medically unnecessary and were falsified to misrepresent the patients’ true medical condition.
The scheme, which ran from September 2012 to August 2015, was uncovered by a joint investigation between the HHS-OIG, the Kentucky Office of the Attorney General-Office of Medicaid Fraud and Abuse, and the United States Attorney’s Office.
The investigation revealed that the defendants knew that Medicare would only pay for non-emergency transports if other forms of transportation would endanger the patient’s health, and Medicaid would only pay if the patient’s condition required a transport by stretcher. However, the defendants submitted claims for transports that did not meet these criteria, defrauding Medicare and Medicaid of $249,539.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Derrick Jackson, Special Agent in Charge of the Atlanta Regional Office of the Department of Health and Human Services, Office of Inspector General, jointly announced the guilty pleas.
The defendants are scheduled to appear for sentencing before Judge Joseph M. Hood on October 29, 2018. Their sentences will be imposed by the Court after consideration of the United States Sentencing Guidelines and the federal statutes governing the imposition of sentences.
This case highlights the importance of vigilance in preventing healthcare fraud and ensuring that those who engage in such activities are held accountable.
The United States was represented by Assistant United States Attorneys Kate K. Smith and Paul C. McCaffrey.
Key Facts
- State: Kentucky
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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