Warrants issued in Medicaid fraud sting

KOKOMO (AP) — A doctor and two office workers were charged with Medicaid and insurance fraud after authorities said they overbilled for counseling work at a private psychiatric clinic.

Dr. David B. Kennedy, of Cicero, was charged Monday with one count of corrupt business influence, six counts of Medicaid fraud and nine counts of insurance fraud.

Kennedy, 55, also is medical director of Logansport State Hospital.

Two women who worked at the clinic were charged with one count each of corrupt business influence, aiding or inducing Medicaid fraud and aiding or inducing insurance fraud. Police said the women did billing and filing work at the Kennedy Clinic in Kokomo.

Police Lt. Jeffrey Kirk said Kennedy routinely billed Anthem and Medicaid for more hours of service than he could have provided during a regular working day.

Kirk said Kennedy billed for 24 hours of service in a single day in 2004. On other days cited in the charges, he billed for 10 to 15 hours a day at a time when he only was supposed to be working part time.

Anthem audited office records after receiving a call from a patient with a question about a billing code on an insurance form. The Medicaid fraud unit of the Indiana attorney general’s office also audited the clinic.

Three other therapists who work at the clinic will not be charged, Kirk said.

Because of the charges, Kennedy has been suspended from his state hospital job, state Family and Social Services Administration spokesman Dennis Rosebrough said.