A federal grand jury in Dallas has indicted 21 individuals – including a former Kingwood hospital executive – allegedly involved in a massive kickback scheme, according to the Dallas Morning News.

Alan Beauchamp, who was administrator from 1991 to 1996 at Kingwood Plaza Hospital in Kingwood when it was owned by MidAmerica Healthcare, was a consultant to the Forest Park Medical Center chain and helped run the chain’s affiliated management company.  He was bought out in 2015.

The indictment alleges that Beauchamp and the other investors “…attempted to refer patients with lower-reimbursing insurance coverage, namely Medicare and Medicaid beneficiaries to other facilities for cash.”

In the indictment, Beauchamp and the 20 other individuals are charged with being part of a four-year conspiracy that funneled $40 million in kickbacks through numerous shell companies.  The individuals include physicians and surgeons.  The indictment said the Forest Park investors collected more than $200 million in “tainted and unlawful claims.”

Forest Park was a chain of luxury hospitals in Dallas, Fort Worth, Frisco and San Antonio.  A luxury hospital was built in Austin but never opened because of a number of construction liens.  The Forest Park chain and its hospitals eventually went bankrupt.  The indictment says the scheme began when the first hospital opened in 2009 and continued through 2013.  

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