In Brief: Chicago Medical Group CEO Charged With Fraud; Accretive Names New CFO
Chicago Medical Group CEO Charged With Fraud
The chief executive officer of a Chicago-based medical group that focuses on making house calls and providing home healthcare services was arrested Tuesday on fraud charges, the U.S. Attorney's office announced.
Dike Ajiri, 62, the CEO of Mobile Doctors, was taken into custody by federal agents and charged with healthcare fraud. A Mobile Doctors physician, Bania Koroma, M.D., 63, was charged with making false statements in connection with the delivery of healthcare benefits.
Mobile Doctors is accused by federal prosecutors of engaging in an elaborate upcoding scheme that netted the company millions of dollars in fraudulently obtained funds from Medicare between 2006 and this year. It involved charging routine patient visits with the highest-possible codes, according to the U.S. Attorney, even though basic care was rednered. Altogether, Mobile Doctors received $34 million in payments using expensive codes between 2006 and 2012.
Additionally, Mobile Doctors also allegedly made false claims about patients being confined to their homes, qualifying them for unnecessary home healthcare services.
Accretive Health Names New CFO; Will Restate Earnings
Chicago-based Accretive Health has named a former petroleum executive as its chief financial officer and treasurer.
John F. Orr was previously CFO at Maxum Petroleum, and held a number of senior finance positions at other firms in the snack, beverage and advertising realms.
“Sean’s significant experience as a chief financial officer and board director makes him an excellent fit for our team,” said Accretive Chief Executive Officer Steve Schuckenbrock.
Accretive, which focuses on financial solutions for providers, has been in a transitional period that has included a replacement of its entire C-suite. Schuckenbrock, a former Dell executive, replaced company founder Mary Tolan in April, while Joseph Flanagan was named chief operating officer a few weeks after Schuckenbrock's appointment.
Orr replaces John T. Staton, who will remain with Accretive as a senior vice president.
Accretive came under fire last year in Minnesota for allegedly coercing patients at hospitals owned by Fairview Health Services to make payments prior to care being rendered. Accretive agreed to exit the state as a result of a lawsuit filed by its attorney general.
Earlier this month, Accretive said it would be late in filing its second quarter results, and would restate prior and current earnings. The company's stock has dropped about 30% this year.
Missouri Begins Marketing Push For Exchanges
A Missouri non-profit has begun the state's primary campaign for enrollment in the state's health insurance exchanges.
Cover Missouri, an initiative launched by the Missouri Foundation for Health, officially kicked off the campaign this week. It announced $4.9 million grants to nine community organizations and three providers, including Ozarks Medical Center, Phelps County Medical Center, and the Freeman-Oak Hill Healthcare System. The money will be used to educate state residents about their options regarding the Missouri Health Insurance Marketplace, as well as the separate exchange for small businesses and their employees.
Cover Missouri has also launched a new website, covermissouri.org, to obtain information about the health insurance exchange.
"Missourians need accurate, easily accessible information to make educated choices about health coverage," said Ryan Barker, a Missouri Foundation for Health vice president. “Through the connections and tireless community outreach of our partners and grantees, we can help increase coverage and achieve our goal of improving the health of Missourians.”
