Day: September 8, 2020

Posted in Business

Hacienda execs indicted, facility to pay Arizona $11M over Medicaid fraud


Exterior of Hacienda HealthCare facility in Phoenix on Feb. 18, 2019. (Photo: Tom Tingle/The Republic)

Two former officers of a Phoenix facility where an incapacitated woman was raped and gave birth have been indicted on criminal fraud charges, and the facility will pay Arizona more than $11 million for years of inflated Medicaid billings.

Board members of Hacienda HealthCare on Wednesday acknowledged receiving millions of dollars that it didn’t earn from the state as part of a civil settlement with the Arizona Attorney General’s Office.

A grand jury this week indicted Hacienda’s former chief executive officer and chief financial officer on multiple fraud charges. Authorities accused Bill Timmons and Joseph O’Malley of orchestrating a complex scheme to artificially jack up costs through a series of connected businesses.

State prosecutors allege Timmons and O’Malley used direct and indirect costs, inflated expense reports and false bills to bilk the state’s low-income

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