Texas hospital CEOs indicted for $16M fraud scheme

Two men surrendered to the FBI in El Paso, Texas, after being indicted for allegedly orchestrating a healthcare billing fraud scheme involving urine drug tests, the Justice Department said in a July 28 news release.

What happened?

  • Jose Huerta, 58, was the CEO of two long-term acute care hospitals in El Paso. Israel Navarro, 47, owned one of the hospitals and had financial ties to the other. According to the indictment, the pair conspired with others to carry out an illegal pass-through billing scheme involving urine drug tests.
  • The indictment alleges that the hospitals submitted false claims to Blue Cross Blue Shield, falsely stating that the individuals tested were inpatients and that UDT samples were sent to a Dallas-area lab. In reality, none of…

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