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Tennessee State Veterans’ Homes Paid for Medical Services That Were Not Provided

Medical Providers Indicted for Theft
Tuesday, November 10, 2020 | 09:00am
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An investigation by the Tennessee Comptroller’s Office has resulted in the indictments of Dr. Christopher F. Standley, Dr. Robert M. North, and his wife Lisa L. North. Investigators determined these individuals owned medical companies that wrongfully obtained payments from Tennessee State Veterans’ Homes for medical services that were not provided.

The Tennessee State Veterans’ Homes (TSVH) Board operates four skilled nursing facilities across the state. The homes provide healthcare and quality of life support to veterans. The TSVH Board contracts with medical and mental health service providers to provide care at its facilities. This investigation was initiated after the TSVH Board reported suspected billing issues related to its contract service providers.

The investigation found that Dr. Christopher Standley, owner of Dynamic Healing, LLC, wrongfully obtained payments totaling $20,376.34 by billing for service visits that were not provided to TSVH residents. Standley was contracted to serve as the Medical Director and to provide attending physician services at the Clarksville facility.

Investigators noted there was no evidence that Dynamic Healing (DH) was in the facility on dates when it indicated it provided services to more than 200 individuals. On some occasions DH billed for services when the resident was not in the TSVH; billed for duplicate residential services; or billed when a resident was away on an activity.

In addition to the wrongful payments, investigators are also questioning an additional $119,924.62 in payments made to Dynamic Healing. These payments are questioned because investigators could not determine whether DH was in the facility or actually saw the residents for the services for which they billed.

Secondly, investigators found that Medical Psychology Consultants (MPC), wrongfully obtained payments totaling $2,392.71. Dr. Robert M. North, owner, was originally contracted to provide mental health services to residents at the Humboldt, Clarksville, and Murfreesboro facilities. On September 14, 2016, Lisa North, Office Manager and wife of Dr. North, became the registered owner of MPC.

MPC billed for services provided to residents who either did not reside at the TSVH or were away on hospital or therapeutic leave; billed for services that had already been paid in prior invoices; billed when the doctor claimed to provide services to two separate residents simultaneously; or billed for services rendered while a resident was away on an activity.

In addition to the wrongful payments, investigators are also questioning an additional $4,653.77 in payments to MPC. These payments are questioned because investigators could not determine whether MPC was in the facility or actually saw the residents for the services for which they billed.

In October 2020, the Rutherford County Grand Jury indicted Christopher F. Standley on one count of theft over $10,000. Robert M. North and his wife Lisa L. North were also each indicted on one count of theft over $1,000.

“The Tennessee State Veterans’ Homes must do a better job of verifying that they are only paying for services that are actually provided,” said Comptroller Justin P. Wilson. “The facilities should keep better records such as sign-in information and notes on when services start and end. Invoices should be reviewed to ensure there are no discrepancies and that vendors are only paid once. I’m pleased to note that the TSVH board has indicated they have implemented policies and procedures to correct these problems.”

To view the investigative report, go to: https://comptroller.tn.gov/office-functions/investigations/find.html

If you suspect fraud, waste or abuse of public money in Tennessee, call the Comptroller’s toll-free hotline at 800.232.5454, or file a report online at: tncot.cc/fraud. Follow us on twitter: @TNCOT

Media contact: John Dunn, Director of Communications, 615.401.7755 or john.dunn@cot.tn.gov

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