Former Arkansas State Medical Board Chairman Arrested for Medicaid Fraud
The former chairman of the Arkansas State Medical Board, Brian Thomas Hyatt, has been taken into custody on two counts of Medicaid fraud, according to authorities.
Arrest and Detainment
Brian Thomas Hyatt, a 49-year-old psychiatrist from Rogers, was apprehended by the Rogers Police on Monday, as reported by the Arkansas Democrat-Gazette. Currently, he is detained in the Benton County Jail on behalf of the Pulaski County Sheriff’s Office, with no bond set, as indicated by online jail records. Despite a call placed to his attorney, Erin Cassinelli, no immediate response was received as of Tuesday.
Statement from Attorney General Tim Griffin
Attorney General Tim Griffin disclosed that Dr. Hyatt’s arrest came about after a warrant was issued by a Pulaski County district court judge. Griffin stated, “Prior to Dr. Hyatt’s arrest by the Rogers Police Department, prosecutors from my office and defense counsel had already reached an agreement for Dr. Hyatt’s surrender and appearance in court. We are honoring that prior agreement and look forward to his appearance in Pulaski County court later this month.”
Hyatt’s Board Position and Resignation
In January 2019, Hyatt was appointed to the medical board by then-Governor Asa Hutchinson. Although he relinquished his role as board chairman in March, he retained his seat on the board until May, according to the newspaper. In his resignation letter dated May 16, Hyatt asserted his innocence, stating, “I am not resigning because of any wrongdoing on my part, but so that the board may continue its important work without delay or distraction. I will continue to defend myself in the proper forum against the false allegations being made against me.”
Investigations Unveiled
Allegations of fraud against Hyatt prompted both state and federal investigations. U.S. Attorney Clay Fowlkes confirmed that the U.S. Drug Enforcement Administration had searched Hyatt’s Rogers office in May. The attorney general’s office received a whistleblower’s tip from the behavioral health unit of Northwest Medical Center-Springdale in April 2022, leading to the issuance of a search warrant.
Hyatt served as the medical director of the unit since January 2018, but his contract with the medical center was terminated in May 2022.
Medicaid Claims and Settlement
In March, Griffin announced that Northwest Arkansas Hospitals had agreed to pay over $1 million to the state, linked to 246 Medicaid claims. These claims were based on medical evaluations, diagnoses, and supporting documentation certified by Hyatt and nonphysician providers under his supervision. This settlement was reached following an audit by the Arkansas Foundation for Medical Care, a state contractor, which found that the documentation failed to meet the medical necessity requirement for hospitalizations.
Medicaid Inspector General’s Action
The Office of Medicaid Inspector General suspended all payments for Medicaid services provided by Hyatt after determining there was a “credible allegation of fraud” against him, as revealed in a February 24 letter obtained by the Northwest Arkansas Democrat-Gazette through the Arkansas Freedom of Information Act.
Civil Lawsuits
In addition to these legal actions, Hyatt is facing several civil lawsuits. One such lawsuit, filed in March in Washington County Circuit Court, alleges that Hyatt and others unlawfully detained patients at Northwest Medical Center-Springdale’s behavioral health unit in order to fraudulently bill private health insurance, Medicare, Medicaid, or other applicable insurance for care and treatment that was not actually provided.