A Leavenworth, Kan., psychologist faces as much as $4.75 million in fines and up to 100 years in prison if convicted on charges of accepting $40,500 in kickbacks from a National Medical Enterprises hospital in Kansas City, Mo.
A federal grand jury in Kansas City, Mo., last week indicted Swaran Kumar Jain, 42, and the Center for Mental Health Services, a Leavenworth mental health clinic, said U.S. Attorney Steve Hill in Kansas City. The clinic also faces $4.75 million in fines.
NME's facility, North Hills Hospital, was named an unindicted co-conspirator. No indictments were returned against the hospital because the case would be covered under an estimated $300 million settlement being negotiated between Santa Monica, Calif.-based NME and the federal government, NME officials said. However, that agreement does not preclude indictments against NME executives.
The federal government is accusing North Hills of paying kickbacks ranging from $1,000 to $10,000 a month in return for referring 61 patients to the hospital. Of those patients, 28 were insured by the Civilian Health and Medical Program of the Uniformed Services.
CHAMPUS was billed $556,159 and paid the hospital $268,530 for the care, the U.S. attorney's office said. The scheme allegedly took place between early 1989 and mid-1992.