Insurance Fraud NEWS
Tennessee pain-chain chief bribed for medical-device referrals
April 04, 2019, Nashville, TN
The former CEO of one of what was once one of the largest pain management companies in the country was convicted of health care fraud on Thursday after a seven-day trial in downtown Nashville.
John Davis, 41, of Franklin, who ran Comprehensive Pain Specialists from 2011 to 2017, was convicted of one count of conspiracy to defraud the United States and seven counts of violating anti-kickback laws, according to a news release from the Department of Justice.
Davis will be sentenced later this year, the release stated.
CPS, based in Brentwood, was at one time the largest pain clinic chain in the American Southeast, with as many as 40 clinics across 10 states. The company collapsed in 2018, closing or selling all clinics with little warning to patients.
Prosecutors said in court documents that Davis illegally referred patients to a medical device company, CCC Medical, in return for $770,000 in bribes. Davis' partner-in-crime, CCC Medical CEO Brenda Montgomery, then used those illegal referrals to submit more than $4 million in tainted claims to Medicare.
Prosecutors also alleged in court records that Davis personally inflated Medicare billings to put extra money in his pockets, then bragged about it to other employees.
Finally, emails filed as part of the court case showed that Davis and Montgomery plotted to forge the signature of a dead patient so they could continue to bill Medicare in his name.
Montgomery pleaded guilty in January.