Ex-CEO, ex-CFO for Hacienda HealthCare indicted for fraud; state is owed nearly $11M
- PHOENIX (3TV/CBS5) -- A grand jury has indicted Hacienda HealthCare’s former CEO Bill Timmons and former CFO Joseph O’Malley on several felony charges of fraud and racketeering after the facility allegedly overbilled the state millions of dollars between 2013 and 2018.
- The investigation found that Hacienda improperly allocated costs, inflated reported expenses, and engaged in improper billing from 2013 to 2018, resulting in an overpayment of at least $10,895,648.25 to Hacienda from the Arizona Health Care Cost Containment System (AHCCCS.)
- > According to the AGO, during the contract term, Timmons and O’Malley regularly met and provided Hacienda’s board of directors with financial data regarding the entity’s performance, but not about how costs were allocated among affiliated programs and entities.
- > "Although the $12 million repayment and fine included in the civil settlement represent an extreme financial hardship for the company, we agreed to it voluntarily because it’s the right thing to do – and because it gives Hacienda a chance to move forward honorably," current Hacienda HealthCare CEO Perry Petrilli said in a statement Wednesday afternoon. (Scroll to the bottom of this story for Petrill's full statement.)
- Source > AZ Family
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