The son of the CEO states it was the fault of the one employee 
who had already been arrested for fraud. Riverside hospital had a large concentration of mentally ill patients. This was a lure and pay fraud plan with soliciting Medicare eligible patients with cigarettes, food, coupons, etc. for the the on site “Country Store”. This was part of a big Medicare sweep today and in California there were 18 arrests and the full FBI report can be read here and again it was DME at the focus. The fraud cases were all pretty much services that were billed and never provided in one form or another. BD
After 30 years as CEO of one of Houston's most historic hospitals, Earnest Gibson III, along with his son and five others, was arrested Thursday - part a national Medicare fraud sweep involving $430 million in bogus billings and 91 health care providers in seven states.
If the allegations against the 68-year-old Gibson are true, that he and others at the hospital bilked the Medicare program of $158 million over a period of more than seven years, it could prove lethal for Riverside, once the primary hospital for the city's black population.
They are among dozens of individuals who were arrested or surrendered Thursday as indictments were unsealed nationwide. The Gibsons are accused of teaming up with Riverside's previously indicted assistant administrator, Mohammad Khan, who pleaded guilty in the scheme in February.
Together, the indictment alleges, the three created a plan that paid up to $3,200 in cash to "patient recruiters." The recruiters, in turn, would pay Houston-area group-home owners to send patients to Riverside's satellite clinics offering "partial hospitalization programs" for the mentally ill.
Three of the five recruiters: William Bullock III, Robert Ferguson and Regina Askew, were charged with all but the money laundering charge. A fourth recruiter, Leslie Clark, faces 11 charges involving kickbacks, and the fifth, Robert Crane, a driver for Riverside and a recruiter, was charged only with conspiracy to defraud via kickbacks. All but Clark were released on bond Thursday.
http://www.chron.com/news/houston-texas/article/FBI-arrests-historic-Houston-hospital-s-CEO-son-3918870.php#hounews
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