This week, it was announced that a federal jury had found an internal medicine doctor and hospital owner guilty for their roles in a multimillion dollar health care fraud scheme. 50-year-old Harcharan Narang of Houston, Texas and 47-year-old Dayakar Moparty of Houston, Texas were found guilty of one count of conspiracy to commit health care fraud. Both were also convicted on 17 counts of health care fraud and three counts of money laundering.
Both individuals will be sentenced on June 20. Narang practiced at North Cypress Clinical Associates in Cypress, Texas. Moparty managed and operated Red Oak Hospital in Houston. Trial evidence showed that both unlawfully enriching themselves by submitting false and fraudulent claims for medical tests that were either not provided or not medically necessary. They then billed for a higher reimbursement.
Narang and his co-conspirators also falsified home health patient assessment forms so that beneficiaries would appear sicker than they actually were. This allowed Narang and his co-conspirators to obtain higher reimbursement rates from health care benefit programs. Moparty instructed his employees to falsely bill the medical services at Red Oak and other entities even though the patients never received services at Red Oak or the other entities.
During the trial, patients testified that they bought a Groupon for weight loss shots. After meeting with Narang, they all received a handful of medical tests that were not needed or not provided. Trial evidence showed that health care benefit programs paid Red Oak roughly $3.2 million. Moparty covertly paid Narang approximately $3 million dollars to various entities owned by Narang.
Co-conspirator Gurnaib Sidhu has already pleaded guilty to conspiracy to commit health care fraud. Sidhu is awaiting sentencing. Additional details have been made available here.