10 charged in hospital billing scheme

10 people have been charged in connection to a billing scheme that used rural hospitals to submit false claims for laboratory testing, KSHB reports. Those involved billed private insurance companies $1.4 billion in laboratory testing claims. They received about $400 million between 2015 and 2018.

Missouri State Auditor Nicole Galloway discovered the scheme during a 2017 audit of Putnam County Memorial Hospital.

Galloway found $90 million in illegal billings through the hospital. This is the largest fraud exposed in the history of the Missouri State Auditor’s Office.

Over the last three years, Galloway has worked with authorities to uncover similar cases at other rural hospitals.

“Health care fraud impacts the cost of health care for all of us,” Galloway said in a press release. “Those responsible for fraud must be held accountable.”


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