Houston-area clinics raided for alleged Medicare fraud


by Andrew Horansky / KHOU 11 News


Posted on April 26, 2012 at 11:25 PM

Updated Thursday, Apr 26 at 11:41 PM

HOUSTON—FBI agents did not let up on Thursday, following early morning raids at three Houston-area psychiatric clinics.

The raids happened simultaneously just before 5 a.m. and workers said they caught them off guard.

“I have no idea what they’re looking for, what they’re doing,” employee Joyce Sheley said.

An attorney for the clinics said he was just as surprised.

The sting targeted clinics within the Westbury Community Hospital system, which were formerly run by a system called Continuum.

The facilities are on Gasmer, Hornwood, and in Baytown, and treat some of the poorest members of the community.

A source told KHOU 11 News that they would pick up homeless people, bring them to their clinics, and let them watch TV while collecting information. They would then bill Medicare or Medicaid for the visits.

Michael Clark, the clinics’ attorney, said that Westbury is cooperating with investigators.

A source told KHOU 11 News that a disgruntled former employee likely tipped off the FBI.  A manager said they hope to have the clinics reopened by Friday.