State officials confirm raided Evansville hospital under investi - 14 News, WFIE, Evansville, Henderson, Owensboro

State officials confirm raided Evansville hospital under investigation

Posted: Updated:

State officials confirm to 14 News Tuesday night that an Evansville hospital raided last year is under investigation. 

The Indiana Attorney General's Office tells 14 News that it's medicaid fraud unit is conducting an ongoing investigation into Select Specialty Hospital.

State and federal authorities could soon decide whether or not to intervene in a whistleblower lawsuit. The lawsuit was filed in U.S. District Court last year against Select Specialty Hospital by three former employees and unsealed in April.

Among their claims was certain patient treatment decisions were made not out of medical necessity but for financial gain.

14 News was there in May 2012, as investigators from the Attorney General's Office seized documents and other items from inside Select Specialty Hospital.

A month earlier, three former employees of Select, filed a whistleblower lawsuit in U.S. District Court. They claim that since 2007, Select manipulated patient stays and treatment decisions to maximize reimbursements through medicare and medicaid and that those decisions were "made contrary to the interests of patient health and safety." 

The suit also names Select's current Chief Medical Officer Dr. Richard Sloan and a former contracted associate, Dr. Jeffrey Selby.

Select's general counsel, Michael Tarvin tells 14 News that Select denies the allegations and will vigorously defend the lawsuit.

In a statement, attorneys for the whistleblowers say the federal government and the state of Indiana have moved quickly to investigate the allegations.

On Tuesday night, the Indiana Attorney General's Office confirms a state investigation.

The attorney for Dr. Richard Sloan tells 14 News his client denies all allegations in this complaint. A call to lawyers listed for Dr. Jeffrey Selby was not returned.

Attorneys for the complainants say the State of Indiana and the federal government have until next month to intervene in this lawsuit.

Related stories:

Woman speaks out about sister's care at Select Specialty
IN Attorney General's Office seizes documents from Specialty Hospital

Copyright 2013 WFIE. All rights reserved.

Powered by WorldNow