Texas Mutual Insurance Co. reported that a Travis County jury convicted Howard T. Douglas III, M.D. of Frisco, Texas, on felony workers’ compensation fraud-related charges for overbilling Texas Mutual for functional capacity evaluations. Sentencing is set for June 19, 2014.
Texas Mutual previously investigated Douglas and Western Medical Evaluators, a company he co-owned with his daughter Barbara Douglas, on allegations that Texas Mutual was overbilled for the time taken to perform the functional capacity evaluations. That investigation resulted in an earlier conviction of Howard Douglas and Western Medical Evaluators.
During the Western Medical Evaluators investigation, Texas Mutual uncovered evidence that Douglas created three additional companies: North Texas Medical Evaluators, Marconi Physical Performance Testing and Nolan Physical Performance & Neurodiagnostics.
These companies were used to continue the fraudulent overbilling scheme.
Unchecked, overbilling and other workers’ compensation health care fraud can lead to higher premiums for all Texas employers.
Source: Texas Mutual Insurance Co.