Gary D. Newsome, False Billing and Kickback Scheme, Florida 2023
Former HMA CEO Pays $3.46 Million for False Billing and Kickback Scheme
Gary D. Newsome, former CEO of Health Management Associates LLC (HMA), a hospital chain based in Naples, Florida, has agreed to pay $3.46 million to settle allegations that he caused HMA to knowingly submit false claims to government healthcare programs.
The settlement resolves allegations that Newsome caused HMA to pressure Emergency Department physicians to increase inpatient admissions by recommending admission without regard to medical necessity. The government claimed that the inpatient admission of these beneficiaries was not medically necessary, and that the care needed by, and provided to, these beneficiaries should have been provided in a less costly outpatient or observation setting.
The United States also alleged that Newsome caused HMA to pay remuneration to EmCare, a company that provided physicians to staff HMA hospital EDs, to recommend admission when patients should have been treated on an outpatient basis. As part of the alleged scheme, Newsome caused HMA to make certain bonus payments to EmCare ED physicians and tied EmCare’s retention of existing contracts and receipt of new contracts to increased admissions of patients who came to the ED.
The allegations against Newsome were part of a larger investigation into HMA's billing practices, which resulted in the company paying $61.8 million in 2018 to settle similar allegations. EmCare also paid $29.6 million in 2017 to resolve its liability in the matter.
The settlement resolves a lawsuit originally filed in the U.S. District Court for the District of South Carolina by Jacqueline Meyer, a former employee of HMA.
Newsome served as CEO of HMA from September 2008 through July 2013. HMA was acquired by Community Health Systems Inc. (CHS) in January 2014, after the alleged conduct at HMA occurred.
Key Facts
- State: Florida
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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