‘Questionable lab activity’ at rural hospitals being scrutinized
Management consultant Jorge Perez has purchased nearly 20 rural hospitals in Missouri, Kansas, Oklahoma, Florida and other states and managed to save them from closing. His secret, however, appears to involve billing insurance companies for laboratory work not performed at those hospitals.
As explained by Kansas City Public Radio, the practice was outlined by the Missouri State Auditor when examining another Perez-owned hospitals: Putnam County Memorial in Unionville, Missouri. Putnam started working as a specialized reference lab which billed for tests—allowable under certain circumstances by Medicare—even when they’re performed elsewhere.
The result was a dramatic increase in Putnam’s revenue, which rose from $7.5 million to $92 million in a single year. The auditor report said little of that money was used for the hospital.
“It appears that Putnam County Memorial Hospital is being used as a shell company for questionable lab activity that's occurring across the country,” the report said.
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John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.