Former Texas hospital CEO, owner charged with $16M wire fraud – Becker’s Hospital Review | Healthcare News

Two individuals, the former CEO of two El Paso, Texas-based long-term acute care hospitals and the owner of one of them, have voluntarily surrendered to the FBI after they were formally indicted on charges of wire fraud involving healthcare billing.

Jose Huerta served as CEO of both hospitals and Israel Navarro owned one and was financially connected to the other, according to a July 28 news release from the U.S. attorney’s office in the Western District of Texas.

An indictment filed June 25 alleges the two men conspired with others in a scheme involving illegal pass-through billing of urinary drug tests. They submitted false insurance claims to Blue Cross Blue Shield, indicating that the individuals tested were patients at their hospitals, according to the release.

Mr. Huerta and Mr. Navarro submitted $16 million in claims for the lab testing, which resulted in more than $12 million in losses to Blue Cross Blue Shield, the release said.

Both men were released on separate bonds and are each charged with one count of conspiracy to commit wire fraud, one count of wire fraud and one count of conspiracy to commit mail fraud, the release said.

If convicted, they face up to 20 years in prison and a $250,000 fine for each count.

The FBI and the Texas Department of Insurance are investigating the case, the release said.

Becker’s has reached out to the attorneys for Mr. Huerta and Mr. Navarro and will update this story if more information becomes available.