In trouble again: Houston Riverside General Hospital accused of misusing $32 million FEMA grant
HOUSTON -- According to a new federal audit, the gross mismanagement at Riverside General Hospital did not end with the 2012 indictment, arrest and removal of its longtime CEO Earnest Gibson III in a massive Medicare billing fraud scheme.
FEMA announced Wednesday that the agency wants to recover the entire $32 million grant, disbursed and promised, awarded to the Houston institution which currently has no operations after an analysis determined that money earmarked for Hurricane Ike repairs was misused.
The audit also blames the state of Texas for lax oversight of federal grants.
The 27-page report from the Department of Homeland Security's Office of Inspector General concluded that the scandal continued after Gibson III, his son and other co-conspirators were indicted in a $160 million Medicare fraud scheme. A dozen people faced criminal charges in a tumultuous episode that crippled the historic institution and saddened supporters.
Read more: http://www.chron.com/news/article/Report-accuses-Riverside-of-misusing-32-million-6540143.php
Earlier thread:
Houston Riverside Hospital CEO Convicted of Medicare/Medicaid Fraud that Siphoned $158 Million