Former CEO of several hospitals jailed for fraud, bribes, tax evasion

In what could be an addition to the 10 Notorious Healthcare Execs in 2011, ex-hospital leader Abraham Martinez began serving his five years in prison last month for his role in a healthcare fraud scheme, reports the LeaderLegder.

Martinez pleaded guilty to conspiracy to commit bribery related to federal funds and tax evasion while he was CEO of Laredo (Texas) Medical Center, which is owned by hospital chain Community Health Systems (CHS).

A federal investigation revealed that Martinez and his wife had an anesthesiologist pay them more than $95,000 using fake Medicaid and Medicare patient names from December 2005 to October 2008 to keep his contract with Laredo Medical Center, notes the article.

Martinez also was sentenced to three years probation, and with his wife owes $74,948 in restitution and a $50,000 fine.

After Laredo learned of the allegations in 2008, it reported the issue and conducted an investigation. The following March, CHS moved Martinez to serve as CEO of Cedar Park (Texas) Regional Medical Center (CPRMC), notes the LeaderLedger.

A civil lawsuit was filed against Martinez and others in October 2009, and Martinez stepped down as head of CPRMC in January 2010. Since then, Martinez served as CEO of South Hampton Community Hospital near Dallas; he resigned in September.

To learn more:
- read the LeaderLegder article