CLEVELAND-A federal jury in Ohio convicted a clinical laboratory of defrauding Medicare and Medicaid of $1.7 million and paying kickbacks to nursing homes. Colin E. Bayliss, 52, owner of Clinitec in New Baltimore, Ohio, and Raymond H. Pinkerton, 57, former Clinitec president, were both found guilty on 44 counts, each punishable by up to five years in prison and a $250,000 fine. The company faces maximum fines of $500,000 for each count. Sentencing is scheduled for Oct. 14. According to HHS, Clinitec entered contracts with nursing homes across the state to perform glucose blood stick tests on their residents, but tests actually were performed by nursing home staff. Two other defendants, H.T. Villavecer, 62, the medical director of three Columbus-area nursing homes, and his son, Virgil Villavecer, 34, the former owner of a durable medical supply company, pleaded guilty to receiving illegal kickbacks and were sentenced previously.
KANSAS CITY, Mo.-Blue Cross and Blue Shield of Kansas City has appointed two executives to fill recently vacated positions. Tom Bowser, a longtime Blues executive, will become executive vice president and chief operating officer, overseeing all insurance operations. Peter Yelorda was named senior vice president and chief administrative officer. For the past two years, he was assistant city manager of Kansas City, Mo., and before that held a number of municipal and county posts in Michigan. Blue Cross and Blue Shield of Kansas City recently lost its top leadership in a shakeup (June 16, p. 14). It named a new chief executive officer, John Mascotte, on June 10.