A Breathitt Co Ambulance Company, its owner, and managers, have each pled guilty to health care fraud.
According to The Department of Justice, Hershel Jay Arrowood, Lesa Arrowood, Terry Herald, and Arrow-Med Ambulance Inc. pleaded guilty to health care fraud in connection with fraudulent claims to Medicare and Medicaid for medically unnecessary ambulance transports.
Jay Arrowood has owned and operated Arrow-Med in Breathitt Co since September 2012.
Reports indicate that Arrow-Med provided certain patients with non-emergency ambulance transports, to and from a dialysis clinic in Jackson.
Each defendant admitted they knew that Medicare would only pay for these non-emergency transports if other forms of transportation would endanger the patient’s health.
Similarly, the defendants knew that Medicaid would only pay for nonemergency transports if the patient’s condition required a transport by stretcher.
Jay Arrowood, Terry Herald, and Arrow-Med all admitted that between September 2012 and August 2015, they worked together to submit false claims to Medicare and Medicaid seeking payment for non-emergency ambulance transports provided to certain patients.
Lesa Arrowood admitted that she joined this scheme in December 2013.
They admitted that they knew these patients did not qualify for Medicare or Medicaid coverage for the ambulance services and the run sheets documenting the transports was falsified to misrepresent the patients’ true medical conditions.
The Department of Justice said Medicare and Medicaid were defrauded of $249,539.
All defendants are scheduled to appear for sentencing on October 29, 2018.