Skip to content Skip to navigation

Former Hospital CFO Charged with EHR Incentive Fraud

February 10, 2014
by Gabriel Perna
| Reprints

A former hospital CFO for Tariq Mahmood's, M.D. now collapsed hospital chain, including Shelby Regional Medical Center (Center, Texas), is being charged with healthcare fraud for lying about use of certified electronic health record (EHR) technology to receive incentive payments from the Centers for Medicare and Medicaid Services (CMS).

According to the indictment in the Eastern District of Texas, CFO, Joe White, 66 of Cameron, Texas, made it seem like Shelby Regional had transitioned from paper to electronic records. He direct the software vendor, not named in the indictment, and hospital employees to manually input data from paper records into the EHR, months after the patient was discharged and after the end of the fiscal year.

The indictment also says that White attested to meaningful use by using someone else's name information without that individual's consent or authorization. For this, he is being charged with aggravated identity theft. CMS paid Shelby Regional $785,655.00 for meaningful use.  In total, hospitals operated by Dr. Mahmood, were paid $16,794,462.66 by the EHR incentive programs for fiscal years 2011 and 2012. It's unclear if White allegedly did this for all of the hospitals.

"As more and more federal dollars are made available to providers to adopt Electronic Health Record systems, our office is expecting to see more cases like this one," Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General's (OIG) Dallas Regional Office to local CBS affiliate, KYTX 19 in Tyler, Texas.

If White is convicted, he faces up to five years in prison for making a false statement and two for the identity theft charge. According to Dallas News, White rose from maintenance man to CFO and administrator in Mahmood’s hospital chain.

White has pleaded not guilty to the charges.

A recent report from the U.S. Department of Health and Human Services’ (HHS) Office of the Inspector General (OIG) indicated that CMS has not yet adopted practices that would protect fraud vulnerabilities in electronic health record (EHR) systems.

Read the source article at



ONC National Coordinator Gets Live Look at Carequality Data Exchange

Officials from Carequality have stated that there are now more than 150,000 clinicians across 11,000 clinics and 500 hospitals live on its network. These participants are also able to share health data records with one another, regardless of technology vendor.

American Red Cross, Teladoc to Provide Telehealth Services to Disaster Victims

The American Red Cross announced a partnership with Teladoc to deliver remote medical care to communities in the United States that are significantly affected by disasters.

Report: The Business of Cybercrime in Healthcare is Growing

While stolen financial data still has a higher market value than stolen medical records, as financial data can be monetized faster, there are indications that there is ongoing development of a market for stolen medical data, according to an Intel Security McAfee Labs report.

Phishing Attack at Baystate Health Potentially Exposes Data of 13K Patients

A phishing scam at Baystate Health in Springfield, Mass. has potentially exposed the personal data of 13,000 patients, according to a privacy statement from the patient care organization and a report from MassLive.

New Use Cases Driving Growth in Health Data Exchange through Direct

In an update, DirectTrust reported significant growth in Direct exchange of health information and the number of trusted Direct addressed enabled to share personal health information (PHI) in the third quarter of 2016.

Insurers to CBO: Consider Private Insurers’ Data in Evaluations of Telemedicine

Eleven private insurers, including Aetna, Humana and Anthem, are urging the Congressional Budget Office (CBO) to consider the experience of commercial insurers when evaluating the impact of telemedicine coverage in Medicare.