After an investigation by MLK50 and ProPublica, Methodist Le Bonheur Healthcare is erasing debt for unpaid hospital bills owed by more than 6,500 patients. Our reporting found the hospital had profited by aggressively pursuing patients who couldn't pay.
This article was first published on Tuesday, September 24, 2019 in Propublica, andwas produced in partnership with MLK50, which is a member of the ProPublica Local Reporting Network
MEMPHIS, Tenn. — The city's largest nonprofit hospital system has erased the debts owed by more than 6,500 patients it sued for unpaid hospital bills, less than two months after announcing an overhaul of its debt collection processes.
The dramatic shift was prompted by an MLK50-ProPublica investigation that revealed that Methodist Le Bonheur Healthcare filed more than 8,300 debt lawsuits from 2014 through 2018, including against its own employees. Methodist had doggedly pursued low-income defendants who had little ability to pay, often garnishing their meager paychecks.
The single-page "case satisfied" notices filed by Methodist are coming into the Shelby County General Sessions Court faster than staff can process them. A court administrator estimated a backlog of about 4,500 Methodist notices waiting to be entered into the court's system.
From July 30 through Tuesday, the court had logged more than 2,300 notices submitted by the hospital system that wiped away patients' debts. That's more than nine times the number of notices filed by Methodist in the first six months of 2019.
For now, it appears that Methodist is no longer using the courts as a collection agency, a practice that was roundly criticized by health care experts, some elected officials and members of the United Methodist Church, with which Methodist is affiliated. Since July 3, the hospital has not filed any new debt collection lawsuits or garnishment attempts.
Methodist's turnaround elated defendants and consumer advocates.
Among the defendants who no longer owe is Carrie Barrett, a part-time Kroger employee featured in one of the MLK50-ProPublica articles. Barrett's case began in July 2007, when a two-night stay at Methodist Bonheur Healthcare, where doctors performed a heart catherization, left her with a $12,019 bill. In 2010, Methodist sued her for more than $16,000, one-third of which was attorney's fees.
Over the years, thanks to interest and court costs, Barrett's debt climbed to more than $33,000. If she paid $100 per month as ordered by the court, she would be 90 by the time she paid it off.
Barrett said she received a call nearly two weeks ago from an administrator who said the hospital had reviewed her records. "He said, 'The balance is zero. ... I said, 'You don't know how good that sounds to my ears.'"
Jessica Curtis, a senior adviser at Community Catalyst, a national advocacy organization, has followed other nonprofit hospitals that have been the subject of similar media reports.
"I was trying to remember when have I seen such a rapid switch," Curtis said. "I don't know that I've seen that before. The scale of what they are attempting to rectify is really commendable from what we've seen thus far."
Because the case satisfied notices do not include the amount owed, the total dollar amount of debt Methodist forgave could not immediately be quantified. Methodist did not immediately respond to requests for comment.
Nonprofit hospitals are generally exempt from local, state and federal taxes. In return, the federal government expects them to provide a significant community benefit, including charity care and financial assistance.
Methodist, which operates five hospitals in Shelby County, does provide some charity care — but experts faulted it for its aggressive collections practices in a city where nearly 1 in 4 residents live below the poverty line.
Its handling of poor patients began with a financial assistance policy that, unlike many of its peers around the country, all but ignored patients with any form of health insurance, no matter their out-of-pocket costs. If they were unable to afford their bills, patients then faced what experts said is rare: A licensed collection agency owned by the hospital.
Lawsuits followed. Finally, after the hospital won a judgment, it would repeatedly try to garnish patients' wages, which it did in a far higher share of cases than other nonprofit hospitals in Memphis.
Methodist repeatedly refused to make its executives available for interviews, but it sent statements defending itself, noting how it is the only health care system that has hospitals in all four quadrants of Shelby County and that it provided more than $226 million in community benefit. It did not address why its financial assistance policy was less generous than those of its peers or why it garnished wages in a higher percentage of cases than other hospitals.
But on June 30, three days after the MLK50-ProPublica investigation was published, Methodist CEO Michael Ugwueke said in a column published in The Commercial Appeal that the hospital would spend the next 30 days reviewing its collections and financial assistance policies.
Days later, Methodist announced it would suspend court collection activities over unpaid hospital bills. In the weeks that followed, the hospital's attorney, R. Alan Pritchard, dropped dozens of suits that had been on the court docket.
On July 30, the hospital announced wide-reaching reforms. "We were humbled to learn that while there's so much good happening across our health system each day, we can and must do more," Ugwueke said in a media conference call.
Under the new policy, financial assistance will be provided to patients earning up to 250% of the federal poverty line, or $53,325 for a family of three. The previous policy applied to uninsured patients with incomes up to 125% of the federal poverty line. Methodist said more than half of the population of greater Memphis would be eligible for assistance under the new policy.
The hospital also said it would no longer accept court-ordered interest on medical debt nor would it seek to collect attorney's fees or court costs from patients.
And it said it would raise its minimum wage to $13.50 an hour by mid-September and to $15 an hour by January 2021. The lowest-paid employees made $10 an hour and about 18% of workers earned less than $15 an hour, the hospital reported in response to MLK50's 2018 Living Wage Survey.
The pay increase signaled that Methodist took the issue seriously, Curtis said. "The inclusion of wages means someone has realized not just the symptom of the problem but the core root of the problem. This is a clearly promising start," she said.
It's unclear whether Methodist will resume suing patients for unpaid bills. And the hospital has not said how many additional "case satisfied notices" it could file. Plaintiffs cannot refile lawsuits after the case has been marked satisfied.
One of the defendants featured in the investigation was a Methodist housekeeper, who asked that her name not be used for fear that the hospital would fire her for talking to a reporter.
In 2017, Methodist sued her for the cost of hospital stays to treat chronic abdominal pain she experienced before the hospital hired her. She owed about $23,000, including around $5,800 in attorney's fees.
In January, a General Sessions Court judge ordered her to pay $75 biweekly. The housekeeper paid reliably until this summer, when she missed several days of work because she was sick, eventually ending up in the hospital. That left her paycheck short.
She received a small annual raise in August, and another to $13.50 less than two weeks ago
Last week, a reporter showed the housekeeper a copy of her case satisfied notice.
"God is a good God," she said, laughing and smiling. "I've been calling them and they tell me nothing. … This is a blessing right here."
Barrett, the Kroger employee featured in the first MLK50-ProPublica story, likewise praised God. At church this month, Barrett had an update for the congregation, which had heard her speak about her financial troubles before.
"I have a zero balance," she said. "I just want to thank God for blessings that he has brought to me. … I thank him for the victory!" she shouted, as others joined her in praise.
"Victory is ours, amen!" a minister said from the pulpit. "Don't y'all know that Jesus will drop those charges? Glory to God!"
To see if a case satisfied notice has been logged in your case, enter your seven-digit docket number in the CourtConnect online lookup system under "Display case information and activities." If your case has been satisfied, the last docket entry will say "Case Satisfied."
You can also enter your docket number into the court's civil online payment system, which will show the amount due.
Hundreds of computer servers worldwide that store patient X-rays and MRIs are so insecure that anyone with a web browser or a few lines of computer code can view patient records. One expert warned about it for years.
This article was first published on Tuesday, September 17, 2019 in ProPublica.
Medical images and health data belonging to millions of Americans, including X-rays, MRIs and CT scans, are sitting unprotected on the internet and available to anyone with basic computer expertise.
The records cover more than 5 million patients in the U.S. and millions more around the world. In some cases, a snoop could use free software programs — or just a typical web browser — to view the images and private data, an investigation by ProPublica and the German broadcaster Bayerischer Rundfunk found.Bottom of Form
We identified 187 servers — computers that are used to store and retrieve medical data — in the U.S. that were unprotected by passwords or basic security precautions. The computer systems, from Florida to California, are used in doctors' offices, medical-imaging centers and mobile X-ray services.
The insecure servers we uncovered add to a growing list of medical records systems that have been compromised in recent years. Unlike some of the more infamous recent security breaches, in which hackers circumvented a company's cyber defenses, these records were often stored on servers that lacked the security precautions that long ago became standard for businesses and government agencies.
"It's not even hacking. It's walking into an open door," said Jackie Singh, a cybersecurity researcher and chief executive of the consulting firm Spyglass Security. Some medical providers started locking down their systems after we told them of what we had found.
Our review found that the extent of the exposure varies, depending on the health provider and what software they use. For instance, the server of U.S. company MobilexUSAdisplayed the names of more than a million patients — all by typing in a simple data query. Their dates of birth, doctors and procedures were also included.
Alerted by ProPublica, MobilexUSA tightened its security last week. The company takes mobile X-rays and provides imaging services to nursing homes, rehabilitation hospitals, hospice agencies and prisons. "We promptly mitigated the potential vulnerabilities identified by ProPublica and immediately began an ongoing, thorough investigation," MobilexUSA's parent company said in a statement.
Another imaging system, tied to a physician in Los Angeles, allowed anyone on the internet to see his patients' echocardiograms. (The doctor did not respond to inquiries from ProPublica.)
All told, medical data from more than 16 million scans worldwide was available online, including names, birthdates and, in some cases, Social Security numbers.
Experts say it's hard to pinpoint who's to blame for the failure to protect the privacy of medical images. Under U.S. law, health care providers and their business associates are legally accountable for securing the privacy of patient data. Several experts said such exposure of patient data could violate the Health Insurance Portability and Accountability Act, or HIPAA, the 1996 law that requires health care providers to keep Americans' health data confidential and secure.
Although ProPublica found no evidence that patient data was copied from these systems and published elsewhere, the consequences of unauthorized access to such information could be devastating. "Medical records are one of the most important areas for privacy because they're so sensitive. Medical knowledge can be used against you in malicious ways: to shame people, to blackmail people," said Cooper Quintin, a security researcher and senior staff technologist with the Electronic Frontier Foundation, a digital-rights group.
"This is so utterly irresponsible," he said.
The issue should not be a surprise to medical providers. For years, one expert has tried to warn about the casual handling of personal health data. Oleg Pianykh, the director of medical analytics at Massachusetts General Hospital's radiology department, said medical imaging software has traditionally been written with the assumption that patients' data would be secured by the customer's computer security systems.
But as those networks at hospitals and medical centers became more complex and connected to the internet, the responsibility for security shifted to network administrators who assumed safeguards were in place. "Suddenly, medical security has become a do-it-yourself project," Pianykh wrote in a 2016 research paper he published in a medical journal.
ProPublica's investigation built upon findings from Greenbone Networks, a security firm based in Germany that identified problems in at least 52 countries on every inhabited continent. Greenbone's Dirk Schrader first shared his research with Bayerischer Rundfunk after discovering some patients' health records were at risk. The German journalists then approached ProPublica to explore the extent of the exposure in the U.S.
Schrader found five servers in Germany and 187 in the U.S. that made patients' records available without a password. ProPublica and Bayerischer Rundfunk also scanned Internet Protocol addresses and identified, when possible, which medical provider they belonged to.
ProPublica independently determined how many patients could be affected in America, and found some servers ran outdated operating systems with known security vulnerabilities. Schrader said that data from more than 13.7 million medical tests in the U.S. were available online, including more than 400,000 in which X-rays and other images could be downloaded.
The privacy problem traces back to the medical profession's shift from analog to digital technology. Long gone are the days when film X-rays were displayed on fluorescent light boards. Today, imaging studies can be instantly uploaded to servers and viewed over the internet by doctors in their offices.
In the early days of this technology, as with much of the internet, little thought was given to security. The passage of HIPAA required patient information to be protected from unauthorized access. Three years later, the medical imaging industry published its first security standards.
Our reporting indicated that large hospital chains and academic medical centers did put security protections in place. Most of the cases of unprotected data we found involved independent radiologists, medical imaging centers or archiving services.
One German patient, Katharina Gaspari, got an MRI three years ago and said she normally trusts her doctors. But after Bayerischer Rundfunk showed Gaspari her images available online, she said: "Now, I am not sure if I still can." The German system that stored her records was locked down last week.
We found that some systems used to archive medical images also lacked security precautions. Denver-based Offsite Image left open the names and other details of more than 340,000 human and veterinary records, including those of a large cat named "Marshmellow," ProPublica found. An Offsite Image executive told ProPublica the company charges clients $50 for access to the site and then $1 per study. "Your data is safe and secure with us," Offsite Image's website says.
The company referred ProPublica to its tech consultant, who at first defended Offsite Image's security practices and insisted that a password was needed to access patient records. The consultant, Matthew Nelms, then called a ProPublica reporter a day later and acknowledged Offsite Image's servers had been accessible but were now fixed.
"We were just never even aware that there was a possibility that could even happen," Nelms said.
In 1985, an industry group that included radiologists and makers of imaging equipment created a standard for medical imaging software. The standard, which is now called DICOM, spelled out how medical imaging devices talk to each other and share information.
We shared our findings with officials from the Medical Imaging & Technology Alliance, the group that oversees the standard. They acknowledged that there were hundreds of servers with an open connection on the internet, but suggested the blame lay with the people who were running them.
"Even though it is a comparatively small number," the organization said in a statement, "it may be possible that some of those systems may contain patient records. Those likely represent bad configuration choices on the part of those operating those systems."
Meeting minutes from 2017 show that a working group on security learned of Pianykh's findings and suggested meeting with him to discuss them further. That "action item" was listed for several months, but Pianykh said he never was contacted. The medical imaging alliance toldProPublica last week that the group did not meet with Pianykh because the concerns that they had were sufficiently addressed in his article. They said the committee concluded its security standards were not flawed.
Pianykh said that misses the point. It's not a lack of standards; it's that medical device makers don't follow them. "Medical-data security has never been soundly built into the clinical data or devices, and is still largely theoretical and does not exist in practice," Pianykh wrote in 2016.
ProPublica's latest findings follow several other major breaches. In 2015, U.S. health insurer Anthem Inc. revealed that private data belonging to more than 78 million people was exposed in a hack. In the last two years, U.S. officials have reported that more than 40 million people have had their medical data compromised, according to an analysis of records from the U.S. Department of Health and Human Services.
Joy Pritts, a former HHS privacy official, said the government isn't tough enough in policing patient privacy breaches. She cited an April announcement from HHS that lowered the maximum annual fine, from $1.5 million to $250,000, for what's known as "corrected willful neglect" — the result of conscious failures or reckless indifference that a company tries to fix. She said that large firms would not only consider those fines as just the cost of doing business, but that they could also negotiate with the government to get them reduced. A ProPublica examination in 2015 found few consequences for repeat HIPAA offenders.
A spokeswoman for HHS' Office for Civil Rights, which enforces HIPAA violations, said it wouldn't comment on open or potential investigations.
"What we typically see in the health care industry is that there is Band-Aid upon Band-Aid applied" to legacy computer systems, said Singh, the cybersecurity expert. She said it's a "shared responsibility" among manufacturers, standards makers and hospitals to ensure computer servers are secured.
"It's 2019," she said. "There's no reason for this."
How Do I Know if My Medical Imaging Data is Secure?
If you are a patient:
If you have had a medical imaging scan (e.g., x-ray, CT scan, MRI, ultrasound, etc.) ask the health care provider that did the scan — or your doctor — if access to your images requires a login and password. Ask your doctor if their office or the medical imaging provider to which they refer patients conducts a regular security assessment as required by HIPAA.
If you are a medical imaging provider or doctor's office:
Researchers have found that picture archiving and communication systems (PACS) servers implementing the DICOM standard may be at risk if they are connected directly to the internet without a VPN or firewall, or if access to them does not require a secure password. You or your IT staff should make sure that your PACS server cannot be accessed via the internet without a VPN connection and password. If you know the IP address of your PACS server but are not sure whether it is (or has been) accessible via the internet, please reach out to us at medicalimaging@propublica.org.
This story was co-reported with the German public broadcaster Bayerischer Rundfunk.
Doris Burke contributed reporting. Additional reporting by Hakan Tanriverdi, Maximilian Zierer, Steffen Kühne and Oliver Schnuck of Bayerischer Rundfunk.
Across the country, low-income patients are overcoming stigmas surrounding poverty to speak out about nonprofit hospitals that sue them. Federal officials are noticing.
This article was first published on Friday, September 13, 2019 in ProPublica. It was produced in partnership with MLK50, which is a member of the ProPublica Local Reporting Network.
Over the past few months, several hospitals have announced major changes to their financial assistance policies, including curtailing the number of lawsuits they file against low-income patients unable to pay their medical bills.
Investigative reports have spurred the moves, and they prompted criticism from a top federal official.
"We are learning the lengths to which certain not-for-profit hospitals go to collect the full list price from uninsured patients," Seema Verma, the administrator of the Centers for Medicare and Medicaid Services, told board members of the American Hospital Association on Tuesday, according to published remarks. "This is unacceptable. Hospitals must be paid for their work, but it's actions like these that have led to calls for a complete Washington takeover of the entire health care system."
In June, ProPublica published a story with MLK50 on the Memphis, Tennessee-based nonprofit hospital system Methodist Le Bonheur Healthcare. It brought more than 8,300 lawsuits against patients, including dozens against its own employees, for unpaid medical bills over five years. In thousands of cases, the hospital attempted to garnish defendants' paychecks to collect the debt.
After our investigation, the hospital temporarily suspended its legal actions and announced a review. That resulted in the hospital raising its workers' wages, expanding its financial assistance policy and announcing that it would not sue its lowest-income patients. "We were humbled," the hospital's CEO, Michael Ugwueke,told reporters.
The same month, NPRreported that Virginia's nonprofit Mary Washington Hospital was suing more patients for unpaid medical bills than any hospital in the state. Dr. Marty Makary, a surgeon at Johns Hopkins University, and fellow researchers had documented 20,000 lawsuits filed by Virginia hospitals in 2017 alone. The research team found that nonprofit hospitals more frequently garnished wages than their public and for-profit peers.
In mid-August, The Oklahoman reported that dozens of hospitals across the state had filed more than 22,250 suits against former patients since 2016. Saint Francis Health System, a nonprofit that includes eight hospitals, filed the most lawsuits in the three-year span.
In the first week of September, The New York Timesreported that Carlsbad Medical Center in New Mexico had sued 3,000 of its patients since 2015. That report was also based on findings from Makary, who just published the book "The Price We Pay: What Broke American Health Care — and How to Fix It."
And this week, Kaiser Health News and The Washington Post chronicled how Virginia's state-run University of Virginia Health System sued patients more than 36,000 times over a six-year span.
There is no federal law mandating that nonprofit hospitals provide a specific amount of charity care, nor is there readily accessible data measuring how aggressively each hospital pursues patients for unpaid bills. But consumer advocates say the revelations in recent coverage on hospitals' litigation practices are troubling.
"It's dismaying to see how common it is," said Jenifer Bosco, an attorney with the National Consumer Law Center who helped craft a Model Medical Debt Protection Act.
Nearly half of the nation's 6,200 hospitals are nonprofits, meaning they are exempt from paying most local, state and federal taxes in return for providing community benefits.
But the issue of nonprofit hospitals engaging in aggressive debt collection practices that push the very communities they are designed to assist into poverty isn't new.
In 2003, The Wall Street Journal detailed how Yale-New Haven Hospital in Connecticut had pursued a patient's widow to pay off his late wife's 20-year-old medical bills. The hospital canceled the debt following the article.
"Some of these things are really outrageous," said Jessica Curtis, a policy expert with Community Catalyst who helped draft billing protections for patients in the Affordable Care Act. "There are really aggressive tactics being used and little consideration or understanding for how those tactics actually impact people."
Grassley, chairman of the Senate Finance Committee, sent a letter to the commissioner of the Internal Revenue Service in February to renew his inquiries into whether nonprofit hospitals provide sufficient community benefits to qualify for tax breaks.
Since publishing our story on Methodist hospital in Memphis, we've continued to work with communities in the city to better understand the toll these lawsuits are taking.
We've learned from our reporting that, because of the stigma around owing money, people who've been sued sometimes don't want to discuss it with a reporter. So we've tried to reach people in several ways, including letters sent in the mail, flyers posted in spots they might frequent and graphics we're sharing on Facebook. We're learning a bit more every day about what resonates with the community, and we hope to report back on that soon.
In the meantime — and we tell this to every person we can — these stories are stronger and more accurate when people who've been sued share their experiences with us. Hearing from more people who have been sued can help us hold more institutions accountable.
If you've been sued by a nonprofit hospital or physician group, we want to hear from you. If you work or have worked for an organization that takes unusually aggressive legal action against people unable to pay, we'd also like to hear from you.
To protect their networks and bottom lines, health insurers don't aggressively pursue widespread fraud, making it easy for scammers. Then they pass the costs off to consumers.
This article was first published on Tuesday, September 10, 2019 in ProPublica.
Like most of us, William Murphy dreads calling health insurance companies. They route him onto a rollercoaster of irrelevant voice menus, and when he finally reaches a human, it's a customer service rep who has no idea what he's talking about. Then it can take days to hear back, if anyone responds at all.
The thing is, Murphy isn't a disgruntled patient. He prosecutes medical fraud cases for the Alameda County District Attorney's Office in Oakland, California. And when he calls insurers, he's in pursuit of criminals stealing from them and their clients. But, he said, they typically respond with something akin to a shrug. "There's no sense of urgency, even though this is their company that's getting ripped off."
It's not just Murphy. I called health care fraud prosecutors across California to ask what insurers were doing to help bring cases against those plundering health care dollars. More than one simply burst out laughing. "Not much," one prosecutor said.
It seems counterintuitive. Escalating health care costs are one of the greatest financial concerns in the United States. And an estimated 10% of those costs are likely eaten up by fraud, experts say. Yet private health insurers, who preside over some $1.2 trillion in spending each year, exhibit a puzzling lack of ambition when it comes to bringing fraudsters to justice.
Like much of what happens behind the scenes in the health insurance industry, the insurers' tepid response to fraud typically goes unexamined. But this year, I dove into the crazy tale of a Texas personal trainer who didn't have a medical license but was easily able to claim he was a doctor and bill some of the nation's most prominent health insurers for four years — walking away with $4 million. David Williams, who was also a convicted felon, discovered stunning weaknesses in the system: that when he applied for a National Provider Identifier, the number required to bill health insurance plans, no one would verify whether he was a doctor; and that when he billed insurers as an out-of-network "doctor," they wouldn't check either and would keep paying him even long after they learned of his fraud. He was later convicted of health care fraud and is now in federal prison.
Williams' scam raised the eyebrows of even my most jaded health care sources. It prompted a half-dozen Democratic senators to write to the federal agency that administers the NPIs and ask what it was doing to plug the "loopholes."
But it also got me thinking: As journalists, we are peppered with press releases touting the fraud enforcement successes in Medicare and Medicaid, the government health plans. The federal Department of Justice and state Medicaid Fraud Control Units file thousands of criminal and civil cases a year (and still are accused of not being as aggressive as they could be). Clearly, their goal is to let folks know they will be prosecuted.
But we rarely hear about the fraud enforcement efforts of private health insurers. These companies manage the plans of about 150 million Americans who get their health benefits through their employers. They're sitting on a massive trove of claims data that can help identify scammers, and problems are routinely flagged by their members. And experts, including investigators who once worked for the insurers, tell me there's rampant fraud against the private plans.
The bottom line is significant: If a con artist, or a corrupt medical professional, makes off with health care dollars, those losses are not necessarily the insurers'. They will be passed on to people covered by the plans in the form of higher monthly premiums and out-of-pocket costs as well as reduced benefits.
So, what's up?
I wasn't going to find out from the insurers. Aetna, Cigna, UnitedHealthcare and others ignored or refused my many requests to interview their fraud investigators or responded with assurances about their fraud-fighting efforts, with few specifics.
A United spokesperson said I couldn't speak to a fraud investigator because "we do not want to make information public that would make it easier for those intent on engaging in fraud to commit these crimes." She said the insurer uses analytics to flag potentially fraudulent billing and, in some cases, physically verifies that medical offices exist.
With that scant response, I plunged into the daunting thicket of agencies that are supposed to oversee the fight against health care fraud, each divided by region and responsibility. I contacted insurance regulators in every state and interviewed more than 50 other experts, including prosecutors, claims analysts and a dozen former investigators for the internal fraud units of private insurers.
What I found has troubling implications, especially for employers and workers who get their health plans through the big insurers. Far from being fierce guardians of your health care dollars, experts told me, the big-name insurers — who sell their own plans or are paid to manage employers' — pick and choose their battles. And, for a variety of reasons, fraud is not a top priority.
California is known for sunshine, surf and health care scams. It's so rife with suspicious bills and kickbacks that the feds based a Medicare Fraud Strike Force in its ground zero for schemes, Los Angeles. The state's Medicaid Fraud Control Unit in the attorney general's office is among the busiest in the nation.
With almost 40 million residents, California is also one of the largest markets for commercial health insurance in the country. Commercial health insurers covered about 14.4 million Californians in 2018. If there's anywhere private health insurers should be beating back fraud, flagging suspicious cases and referring fraudsters to the authorities, it's the Golden State.
Like any rip-off, there are two ways to publicly hold perpetrators accountable and deter others: Prosecute them or sue to recoup the money. I called the district attorneys' offices in California's 14 largest counties, which cover about 80% of the state's population, or 32 million people. How often, I asked, did a fraud case referred by a commercial health insurer lead to criminal charges in 2017 and 2018?
All told, prosecutors in those counties filed charges in just 22 such cases in the two years.
To put that record in context, take a look at the state's Medicaid program, which covers about 13 million low-income people. During fiscal 2017 and 2018, the program's fraud unit filed criminal charges against 321 fraudulent medical providers. It garnered 65 civil settlements and judgments and recovered more than $93 million, according to the state attorney general's office.
A rigorous search for civil lawsuits filed by private health insurers over fraud in California turned up just one case in 2017 and 2018. Experts said insurers rarely sue over fraud because of the high cost of litigation.
I asked the commercial insurers in California for the case numbers of any civil lawsuits they'd filed in those years. Most didn't respond. United said it had filed "more than a dozen civil arbitrations and lawsuits across the country" over "the past couple of years." It included a list of four lawsuits in which the company won, or is seeking, tens of millions of dollars from medical providers. That's not reassuring. United is a behemoth with more than $226 billion in revenue in 2018. Yet it only rarely pursued reimbursement in court.
I called up a former federal fraud prosecutor who'd worked with both Medicare and private insurers. He said my calls to the prosecutors exposed alarming differences in the way fraud is enforced in the private and government health plans. The Medicaid fraud units are "staffed and actively engaged," said Michael Elliott, who ran about 100 fraud investigations when he worked for the Department of Justice in Texas from 2008 to 2015.
Private insurers, he said, simply don't make fraud enforcement a big enough part of their mission. "At the end of the day, it shows their priorities are elsewhere," he said.
Jennifer Lentz Snyder, who heads health care fraud prosecutions for the Los Angeles County District Attorney's Office, said insurers should be grateful she's pursuing fraudsters. But she said that when she asks for even basic information, like the number of times patients were treated at a location, they make it difficult.
"They want us, a criminal agency, to submit questions to their civil lawyers, to examine if there's a 'problem' with the questions," Snyder said. "It suggests we are not on the same page in terms of enforcement and protecting the integrity of the system."
I wondered if perhaps private insurers worked better with egulators, whom they are bound by law to obey.
Michael Marben quickly quashed that notion. Marben, director of the Commerce Fraud Bureau in Minnesota, suspects health insurers in his state are breaking the law. They are required to send his office any case where they have a "reasonable belief" there's been fraud. That allows his office to spot trends, assist with investigations and warn other insurers.
In 2017, insurers in the state referred just two cases of suspected fraud. In 2018, they referred five.
That's not because everyone there is "Minnesota nice." During the same time period, the state's Medicaid fraud unit conducted 596 investigations and netted 134 indictments.
And it wasn't an issue of the profit-driven sector not wanting to cooperate with regulators. In the auto insurance market, for example, the state's Fraud Bureau had more than 2,200 referrals, most of them from insurers.
There's "conscious underreporting" by health insurers, Marben said. "You can't have a company that doesn't experience fraud."
The public doesn't realize that the unregulated fraud has a cost, he said. "This has a direct impact on consumers."
Fraud involving the programs of private insurers has long been flagged as a problem. About three dozen states have similar reporting requirements, based on model legislation developed in the 1990s by the Coalition Against Insurance Fraud. The laws require all insurers to notify state regulators about potential scams. But no one seems to believe the health insurers actually do. "Everyone I visit says the same thing. In some states they receive basically no referrals from health insurers," said Dennis Jay, executive director of the coalition, a nonprofit group of private insurers, government agencies and consumer groups that fights fraud.
Incompetence may also be part of the problem. The California Department of Insurance found in recent audits that the investigators for two major health insurers needed more training because they "missed opportunities" for identifying what the auditors thought could be fraud, an official told me.
But as I began calling around, the dearth of cases was truly remarkable. What was happening to people who were defrauding the insurers? What was happening to the doctors billing for services they didn't provide? And who was watching the money?
Georgia regulators said only three of the state's top 10 health insurers reported any suspected fraud cases in 2017 and 2018.
The Arizona Department of Insurance got 32 referrals in 2017. That seemed low, so the regulator reminded the companies about its fraud reporting law. The next year the number more than quadrupled to 133. Paul Hill, the department's chief law enforcement officer, speculated that companies don't report fraud because they "don't want the publicity."
In Washington, the Office of the Insurance Commissioner only got one report in 2017 from Premera Blue Cross, one of the state's largest insurers. A Premera official told me the company doesn't report potential fraud unless it finds criminal intent. Instead it deals with most cases internally as "abusive billing," which means the company "educates" the perpetrators. Only if the billing issues continue does it become suspected fraud.
Apparently, Premera is a great educator. The company's investigations have led to only one fraud conviction since 2014, the official said.
Steve Valandra, a spokesman for the Washington regulator, doesn't buy the Premera official's explanation for the low number of referrals. The state's reporting law doesn't say insurers have to prove intent to refer a case, he said. It says they need to report any case where they have a "reasonable belief" there may be fraud.
Jay, director of the fraud-fighting coalition, said regulators need to use their authority to crack down on the insurers who don't report suspected fraud. "Fine them," he said.
States only regulate the fully insured health plans, in which people pay monthly premiums and the insurer pays their bills. But more than half of working Americans are covered under self-funded plans, in which their employer is paying the bills and hires an administrator, typically an insurance company, to run things.
Self-funded plans are regulated by the federal Department of Labor, but it barely looks at fraud. The Labor Department oversees plans covering tens of millions of people, but it opened just 359 health-related criminal cases in 2017 and 2018 and filed charges in 185, a spokesman said in an email.
The Department of Justice, which oversees the FBI and federal prosecutors, also investigates and prosecutes fraud in employer-sponsored health plans. But its spokesman said it doesn't track how many cases involve commercial health plans.
Elliott, the former federal fraud prosecutor, said the Justice Department is more focused on policing fraud against the government health plans. When he was a federal prosecutor in North Texas, Elliott said he had about 15 cases involving government plans for every one involving a private one.
When private insurers pitched the occasional case, Elliott said, prosecutors had to weigh whether the insurer would fully cooperate with the investigation. Federal prosecutors dig into the details when they get referrals, he said. They might want to broaden a case, which could create more work for the insurer, or sully its reputation. Or, prosecutors might find out the insurer was not doing its job. "Certain things they wanted you to know about and certain things they didn't want you to know about," he said.
The private insurers, Elliot said, seemed to prefer to close cases quietly, cutting off the fraudster and pursuing repayment. But, he said, that allows the scammer to go on cheating others. That's not fraud enforcement, he said. It's an "accounting mechanism."
I tracked down a dozen or so investigators who once worked for insurers, and they all said the same thing: Insurers don't police fraud as much as they could because it hurts the bottom line.
When Dan Bowerman worked as a medical director for Independence Blue Cross in Philadelphia, he said it was easy to spot apparent fraud. But Bowerman, who is a chiropractor as well as a fraud investigator and expert in billing codes, said it takes a lot of work to show criminal intent. A medical provider can say a staffer made an honest mistake, he said. Or a doctor could claim to be trying a novel treatment, a gray area that medical policies allow. And medical providers can also produce records, bogus or not, to substantiate claims, he said. "There are very few providers that willingly agree that they committed health care fraud," said Bowerman, who worked at the plan for about a decade, leaving in 2012, and is now semiretired.
Michael Crowley investigated fraud for more than a decade for three companies, including Humana and United. The flood of fraud was so great, he said, that investigators ignored suspect claims worth less than $300. Investigating those, the companies determined, would cost more than what they could recover, he said.
But those small claims add up. Williams, the personal trainer from Texas, billed insurers in increments of $300 and under for more than four years, and it added up to about $25 million. "If you're a provider, you're going to figure out that threshold real quick and stay under it," Crowley said.
Crowley and other investigators say targeting suspect medical providers and facilities puts the insurers in a dilemma. They need a certain number of doctors and hospitals in their networks to make plans attractive to employers. They also must ensure patients have access to the care they need.
So apparently, I learned, there's a calculation that goes on: If, for instance, you're the only neurologist in town, your fraud may be forgiven.
"Commercial payers have relationships they are trying to keep intact," said Jennifer Warren, who worked in payment integrity and fraud investigations for the insurance giants Optum, a subsidiary of United, and Cigna. She left the insurance industry in late 2017 to work for a vendor that helps employers reduce pharmacy spending.
At Optum, she said, the payment integrity team would require some suspect providers to provide records substantiating their claims. Or, she said, they would require everyone who billed for certain procedures to provide documentation. But if the providers complained enough, she'd be told to remove the hurdle. It's a balancing act, she said. "They don't want that provider out of the network, even though they're obviously billing incorrectly," she said.
Some insurers say they participate in a voluntary Medicare-led program called the Healthcare Fraud Prevention Partnership that analyzes claims data to look for fraud. But Medicare won't say which insurers had actually shared data, or whether that information had been used to help convict scammers.
Several former fraud investigators said the first step was always to school suspected fraudsters on their misbehavior. That means months of letters ending with the admonition: "Don't do this anymore." Meanwhile, the former investigators said, a river of suspicious bills flowed through the payment system.
"If you talk to anyone who works in the special investigation units and cares about what they're doing, they're frustrated," Warren said.
Louise Dobbe worked as an attorney for United and advised its fraud unit for more than a decade. She believes fraudsters know they are less likely to be prosecuted by private plans. Billing data showed that people cheating United on the commercial side played it straight with Medicare, said Dobbe, who left United in 2014 and stressed she is not speaking on its behalf.
If a doctor fleeces Medicare, the agency can block that person from billing it — a crushing blow. "We don't have the hammer on the private side or the commercial side that Medicare does," she said.
And Dobbe said referring cases to law enforcement is harder than it sounds. "They want it on a silver platter," she said. An insurer might have nailed a $3,000 claim as fraud "dead to rights," but the authorities will pass. "They want the bang for their buck," she said.
Snyder, the Los Angeles County prosecutor, said insurers rarely send her any cases, and there's no excuse. It is "incredibly easy to make a fraud report."
Private insurers, she said, weigh fraud enforcement by its "return on investment," when their priority should be the integrity of the health care system.
"The crime itself is stupid simple," she said. "You lie about something to get something you're not entitled to."
Downplaying its role in the opioid epidemic, Purdue Pharma has embraced a federal statistic showing it was a minor player in the pain pill market. But when we took drug potency into account, Purdue's importance soared.
This article was first published on Monday, September 9, 2019 in ProPublica.
Purdue Pharma has tried to refute accusations that it fueled the opioid crisis by arguing it was a small player in the U.S. market for prescription pain relievers. But a new ProPublica analysis of government data shows that the company, the maker of OxyContin, had a far bigger impact than it portrays.
Purdue's position rests on a Drug Enforcement Administration database, made public by a court order in July, which shows Purdue sold 3.3% of the prescription opioid pain pills in the U.S. from 2006 to 2012.
Last month, when Purdue moved to dismiss a lawsuit by the Massachusetts attorney general alleging that it had downplayed the addiction risk of its potent drug, the company highlighted the DEA statistic in a slide presentation. One slide was headlined: "Purdue makes a very small fraction of opioids nationally."
Company lawyer Timothy Blank told the judge, "The notion that Purdue has created this epidemic is a serious misconception."
The number promoted by Purdue, however, is an inadequate measure of market share and understates the company's role in the opioid epidemic, according to experts and the new ProPublica analysis. That's because the percentage of sales doesn't take the potency and dose of the pills into account. The analysis favored by Purdue treats every pain pill as the same, whether it is a 5 milligram Percocet or an 80 milligram OxyContin. It's analogous to measuring alcohol sales by equating a 12-ounce glass of 100 proof whiskey with a similar-sized can of light beer.
ProPublica analyzed the same data set touted by Purdue but accounted for the wide variation in strengths of prescription painkillers. Besides counting the number of pills sold, the analysis measured the amount and potency of opioid that they contained. Higher doses of opioids are associated with a greater risk of overdose.
On that basis, the market share of Purdue is 16% — about five times higher than the number cited by the company. That makes Purdue the third-largest seller of opioids from 2006 to 2012, behind generic pain pill makers Actavis Pharma and SpecGx, a subsidiary of Mallinckrodt.
"All opioids are not created equal," said Len Paulozzi, a former medical epidemiologist at the Centers for Disease Control and Prevention who researched prescription opioid overdose risk. He said it is important to adjust for potency because "the risk of an overdose, whether fatal or nonfatal, is directly related to the dosage a person receives."
Purdue's contention that it was a minor participant in the opioid painkiller market is both a legal and a public relations strategy. The company has been working to settle more than 2,000 lawsuits blaming it for helping to create the public health disaster, and also to protect the reputation and legacy of the Sackler family, its owners. Once praised for their philanthropy, the Sacklers have more recently been condemned by politicians and advocates for their stewardship of Purdue.
Settlement talks, which included a provision that the Sacklers contribute at least $3 billion of their own money, recently reached an impasse and Purdue is considering filing for bankruptcy, the Associated Press reported Saturday. The Sacklers have been separately sued by more than a dozen states, including Massachusetts and Connecticut, for their role in overseeing the company's allegedly illegal marketing of OxyContin.
Purdue has long experience at countering criticism of OxyContin. The first reports that people were abusing the drug surfaced two decades ago. Since then, Purdue has repeatedly argued that its flagship drug has done more good than harm. Even when Purdue pleaded guilty in 2007 in federal court to a criminal charge of illegally marketing OxyContin by downplaying addiction risks, it blamed misstatements by employees who didn't follow company directives. More recently, the company and representatives of the Sackler family have said that the opioid crisis is now driven by "illegal street drugs" such as heroin and fentanyl.
Purdue declined to comment on the ProPublica analysis.
By minimizing OxyContin's market share, the per-pill sales data that Purdue prefers also muffles the drug's outsized impact in certain states, especially in the Northeast. For example, Purdue's lawyer told the Massachusetts judge that the company sold just 4.6% of the prescription pain pills in the state from 2006 through 2012. But when the total amount of opioid ingredient in each pill is considered, Purdue's market share in the state is actually more than four times higher at 20.5%.
In some states, when sales are adjusted for potency, Purdue sold more painkiller medication than any other company: Purdue was the top seller in Rhode Island, with 31.2% of the opioid market, as well as in Connecticut, where it had 28.5%. In Ohio, which has consistently ranked among states with the highest rates of overdoses, Purdue had one-fifth of the market. In 13 states, Purdue was responsible for 20% or more of retail opioid painkiller sales.
The market share nationally of some companies dropped when potency was considered. SpecGx, which has 37.7% of the market on a per pill basis, fell to 29%. Actavis declined from 34.6% of the total pill market to 30.4% in the ProPublica analysis.
The analysis of the DEA data cited by Purdue was first done by The Washington Post. It partnered with the publisher of the Charleston Gazette-Mail in West Virginia in a joint legal action that prompted the release of the DEA database. The database, called Automation of Reports and Consolidated Orders System, or ARCOS, tracks every opioid pill sold in the country from manufacturer to distributor to pharmacy.
The Post limited its analysis to shipments of oxycodone and hydrocodone, which accounted for three-fourths of all pill shipments to pharmacies. ProPublica also restricted its analysis to the same two drug classes sold by retail outlets and practitioners because the numbers cited by Purdue in court are based on that methodology.
The reason Purdue's market share is significantly larger when measuring the amount of opioid ingredient sold is because OxyContin is formulated at strengths many times higher than most other pain pills.
When Oxycontin was unveiled in 1996, Purdue's marketing campaign touted it as providing longer pain relief while allowing patients to take fewer pills each day. To accomplish that, Purdue packed into each pill a large amount of opioid that was slowly released over a 12-hour period. Its largest dose, until it was taken off the market in 2001 amid safety concerns, was a 160 milligram pill.
Abusers quickly figured out how to crush OxyContin tablets and remove the opioid inside. Some snorted it, while others reduced it to liquid form and injected it.
In determining the amounts of opioid painkillers sold by Purdue and other manufacturers, ProPublica calculated a rate called morphine milligram equivalent, or MME, which is commonly used by public health agencies, including the Food and Drug Administration and the CDC.
The calculation standardizes different types of opioids to the same morphine equivalent. Hydrocodone, the opioid in Vicodin, has a potency that is equivalent to morphine. Oxycodone, the opioid in OxyContin, is one and a half times more potent than morphine. When converting to morphine equivalents, the amount of hydrocodone in a pill is multiplied by one, while oxycodone is multiplied by 1.5.
Using this formula, an 80 milligram pill of OxyContin has an MME of 120 while a 5 milligram Vicodin pill has an MME of 5.
The average total MME for a pill sold by Purdue in the DEA database was 61.5. By comparison, the average MME per pill sold by the largest manufacturer during this time frame, Actavis Pharma, was 11. For the second biggest manufacturer, SpecGx, it was even lower at 9.6 MME.
CDC guidelines advise against prescribing more than 90 MME per day. OxyContin users are typically directed by their doctors to take two pills per day. Based on the DEA database, the typical prescription from 2006 to 2012 would have totaled 123 MME a day — an amount 37% above the maximum recommended by the CDC.
A CDC review in 2016 concluded that higher opioid dosages are associated with increased overdose risk. One of the studies cited by the CDC found that patients taking between 50 and 100 MME of painkillers a day were up to 4.6 times more likely to overdose than those taking less than 20 MME. For patients receiving more than 100 MME a day, the risk was up to nine times higher than for the lower dose group.
"If Purdue sold a lot of 80 milligram pills, they are going to have proportionately more of the market on an MME basis," said Gary Franklin, the medical director for the Washington State Department of Labor and Industries. "That is an important point to get out. People are dying from these higher doses."
Franklin, who is an unpaid expert for the state of Washington in its lawsuit against Purdue, cautioned that other factors increase overdose risk as well. For instance, people who take benzodiazepines, such as Xanax, at the same time as opioids can fatally overdose on lower doses of painkillers.
The FDA, in a staff report this year, also found that a higher daily dose of opioid pain relievers "likely contributes causally to increased risk of intentional and unintentional opioid overdose." The agency noted that other factors influence overdose risk and that a substantial portion of overdose victims either did not have a prescription for the pills they took or were prescribed a lower daily dose.
Until 2010, according to the DEA's National Drug Threat Assessment Summary, OxyContin was "by far" the most commonly abused prescription painkiller in the country. In 2010, Purdue introduced a reformulated version of OxyContin that is harder to abuse. The new version can still be abused if crushed or taken orally, but it does not provide as potent a high as the older version, according to the agency.
In the Massachusetts hearing last month, Purdue relied on the lower per pill market share in oral arguments before the judge and in the accompanying slide presentation of data. One slide stated, "DEA Data Refute the Commonwealth's Allegations."
"What the commonwealth has done is create an extraordinary misperception in the community, and it is a dangerous misperception," Purdue's attorney Blank told the judge at the Aug. 2 hearing, according to a transcript of the proceeding. "The attorney general says it is all on Purdue. It is not all on Purdue."
"All those prescriptions are not equal," responded Assistant Attorney General Sandy Alexander. "Some of those prescriptions are for two pills of the lowest dose opioid. Purdue specialized in the most dangerous prescriptions because they were the most profitable."
The Massachusetts lawsuit cites internal Purdue records in alleging the company pushed higher doses because they were the most profitable. Authorities also allege that the company knew patients taking more of the drug were more likely to overdose. One Massachusetts doctor, who was paid more than $80,000 by Purdue to give talks to other physicians, prescribed 24 of the highest dose OxyContin pills a day for a single patient, according to the state complaint.
"Purdue specialized in getting patients on the highest doses for the longest periods of time," Alexander told the judge. "Those prescriptions, when you count them, they're not all equally valuable to a drug company and they're not all equally dangerous to the people of Massachusetts."
Purdue's market share from 2006 to 2012 would have likely been even higher save for an anomaly in the history of the drug. For a brief time, including the years 2006 and 2007, OxyContin had generic competition. Its sales slumped from $1.3 billion in 2005 to $752 million in 2006 and $1 billion in 2007, according to health care data firm IQVIA. Purdue sued the generic makers and gradually eliminated competition from them so that by 2008, OxyContin sales more than doubled from the prior year to $2.3 billion.
By that measure, dollar sales, Purdue has long been the market leader for prescription opioids. Internal Purdue records indicate OxyContin had more than 28% of the total market share in gross sales each year from 2008 through 2018. Since 1996, sales of OxyContin have totaled more than $35 billion. The Sackler family received at least $8 billion in company profits during that time, according to court records.
This story is a collaboration between ProPublica and STAT.
ProPublica news apps developer Mike Tigas contributed to this report.
Once it was called "hysterical" movement disorder, or simply "hysteria." Later it was labeled "psychogenic." Now it's a "functional disorder."
By any name, it's one of the most puzzling afflictions — and problematic diagnoses — in medicine. It often has the same symptoms, like uncontrollable shaking and difficulty walking, that characterize brain diseases like Parkinson's. But the condition is caused by stress or trauma and often treated by psychotherapy. And, in a disparity that is drawing increased scrutiny, most of those deemed to suffer from it — as high as 80% in some studies — are women.
Whether someone has Parkinson's or a functional disorder can be difficult to determine. But the two labels result not only in different treatments but in different perceptions of the patient. A diagnosis of Parkinson's is likely to create sympathy, but a functional diagnosis can stigmatize patients and cast doubt on the legitimacy of their illness. Four in 10 patients do not get better or are actually worse off after receiving such a diagnosis and find themselves in a "therapeutic wasteland," according to a 2017 review of the literature by academic experts.
"This is the crisis," said University of Cincinnati neurologist Alberto Espay, the author of guidelines on diagnosing functional movement disorders. "It shouldn't be stigmatized but it is. No. 1, patients are wondering if it is real. 'Does my doctor think I am crazy?' Secondly, doctors can approach it in a way that implies this is a waste of their time."
A study published last year in a leading neurological journal stoked the growing controversy. Of patients diagnosed with functional symptoms, 68% were women. This finding, the authors wrote, "suggests that female sex may be an independent risk factor for the development" of functional symptoms.
The study prompted a furious letter to the journal's editor from Dr. Laura Boylan, a New York City neurologist. She argued that the study's results might demonstrate instead that symptoms thought to be psychogenic were actually the result of Parkinson's, and that doctors were slow to identify the brain disease in women. "Disparities in healthcare for women are well established," she wrote, adding, "Women commonly encounter dismissal in the medical context."
For Boylan, the issue was more than a professional debate. It was personal. She had been diagnosed with Parkinson's-like symptoms that her doctors, all top caregivers at some of the world's leading medical institutions, largely believed to be psychogenic or side effects of medication. Most of her doctors were men, but two were women. Boylan, herself a brilliant neurologist, disagreed vehemently with them. She attributed her problems to a physiological cause, a tiny cyst in her brain, and grew despondent when other neurologists doubted her theory. She gave up her medical practice, became housebound and contemplated suicide. Even today, her case remains a mystery.
The first sign that something was wrong came in 2008.
At the time, Boylan was busy with a successful career that included work as a teacher, researcher and clinician. She was an assistant professor of neurology at the New York University School of Medicine; the director of the behavioral neurology clinic for the VA in New York City; and an attending physician at a hospital in Pennsylvania. She was married to another neurologist, Daniel Labovitz, who is a professor at the Albert Einstein College of Medicine and practices at Montefiore Medical Center in the Bronx.
It was while driving at night on a Pennsylvania highway that Boylan experienced a vivid hallucination. She saw a cartoonish chipmunk on the steering wheel, smiling and waving at her. Another time, two blue men with red hats appeared on either side of her. She knew the images were not real, but she couldn't make them go away.
Her doctors at the time blamed the hallucinations on side effects of psychiatric medicine Boylan took for her long-diagnosed bipolar disorder. Her bipolar condition would later add another element of uncertainty to the debate over her Parkinson's-like symptoms. Studies show that people with preexisting psychiatric disorders are more likely to develop Parkinson's — or have a functional disorder with similar symptoms. Boylan said she sees a psychiatrist for the bipolar disorder, but it's "just not a big deal in my life."
Over time, her health continued to worsen. In early 2011, during a tai chi class, she had difficulty balancing on her right leg. Later, she also noticed muscle twitching in her feet and legs.
Boylan was worried that some of her symptoms mirrored those found in patients with amyotrophic lateral sclerosis, or ALS, a rare and degenerative neurologic disease that affects the ability of muscles to function. ALS, also known as Lou Gehrig's disease, was ruled out by a specialist, but an imaging scan performed as part of that exam revealed a small cyst on the front right side of her brain. The location and type of cyst are considered rare. At the time, Boylan and the neurologist she consulted didn't believe the cyst was causing her movement problems and chalked it up as an "incidental" finding not to be concerned about.
In the fall of 2013, Boylan experienced a three-day bout of double vision that forced her to miss work. The episode was disturbing because it left her, for the first time, unable to perform her duties as a doctor.
About a week later, she went to see Janet Rucker, then a neuro-ophthalmologist at Mount Sinai Medical Center. Rucker diagnosed convergence insufficiency, a condition in which the eyes are unable to work together to focus on close by objects. Rucker thought it unlikely the brain cyst was causing the vision problem and believed it was more likely related to medication Boylan was taking, according to her notes.
Boylan returned home unconvinced by Rucker's opinion. Her vision improved enough to allow her to research the condition herself. She said she found instances where levodopa, a medication used to treat Parkinson's that she had prescribed many times for her own patients, helped alleviate the vision problem.
She decided to take her treatment into her own hands and took levodopa she prescribed for herself. Boylan knew the decision to test her own theory was a direct challenge to Rucker's competence. While legal, self-prescribing medication is considered an unsound practice by some in the medical establishment. Physicians who treat themselves risk removing the objectivity usually present in a doctor-patient relationship, which can lead to poor decisions.
Within an hour of taking the levodopa, Boylan's eyes converged and the vision problem cleared. That wasn't all. Involuntary tremors and twitches stopped. She later wrote that she "felt years younger" and "moved much better" immediately after taking the drug. For Boylan, the experience with levodopa confirmed what she had come to suspect; that the cyst in her brain thought to be harmless was in fact causing her Parkinson's-like symptoms. (In Parkinson's, nerve cells in the brain that help control body movements break down or die.) If she had a functional disorder, the drug should have no effect. She excitedly dashed off an email to Rucker reporting her success and attached a video showing her eyes working properly.
"That is a pretty impressive effect," Rucker replied. She wrote that she rarely recommended the drug for convergence insufficiency, but given Boylan's improvement, "perhaps I'll recommend it more often."
Rucker, however, didn't appear to think the cyst was responsible for Boylan's double vision, calling it the "least likely" of options, according to her notes of the case. More likely, she wrote, it was related to other medications Boylan was taking. Boylan didn't learn about the contents of the medical notes from her visit until later. Boylan, who believed her recovery proved that the cyst was the origin of her double vision, was insulted.
"That I solved this problem with levodopa, documented it, and returned to work the next day might be taken as evidence of my skill rather than having a screw loose," she later wrote to Rucker, who declined comment for this story.
Levodopa is a potent drug used to control tremors and stiffness in Parkinson's patients. The development of the drug, and what it revealed about how the brain works, was an important breakthrough that won one of the researchers involved the Nobel Prize in medicine in 2000. But levodopa can also produce side effects that include involuntary movements, from tics to sudden, jerky body motions, different from those that it had alleviated in Boylan.
Boylan decided to continue taking the drug, but wanted another neurologist to help manage her situation. She chose Elan Louis, a neurologist who had been just ahead of her in the Columbia residency program. Boylan told him she was serving as her own neurologist and that her situation was "getting acutely worse." The two doctors saw each other at the occasional reunion, but they were not close. Boylan largely knew of Louis by reputation. He is considered one of the leading experts on movement disorders and is the editor of Merritt's Textbook of Neurology, a standard clinical guide in the field. He practiced at Columbia when Boylan first began seeing him in late 2013 but was recruited to Yale University in 2015 to serve as chief of the movement disorders division in the neurology department.
Louis had not treated a specialist in his own field before. The relationship proved challenging. Boylan has a combination of intelligence and passion that attracts devoted friends. Louis described Boylan as "super smart" and someone who was constantly digging into the medical literature to learn as much as she could about her symptoms and the cyst in her brain.
She could also be blunt and confrontational. Boylan was one of several people arrested a decade ago for refusing to leave a U.S. senator's office as part of a sit-in advocating for single-payer health care. She was also an early proponent of limiting the perks that pharmaceutical companies give doctors to encourage them to prescribe their drugs, a stance that irked some colleagues but also won her admirers. Boylan was not hesitant to challenge her own doctors' assessments, as she had done with Rucker. With a mix of pride and contrition, she describes herself as a difficult patient.
In one email exchange in 2015, Boylan appeared miffed that Louis did not believe that a bout of heart palpitations and dizziness was related to her brain cyst. "I wish you'd responded earlier when you found my questions odd/unreasonable," Boylan chided Louis. "At present I know more about this area than you and yet seem crazier because of it."
At least 10% of the patients who seek help for movement disorders at the Yale clinic are determined to have a psychogenic, or functional condition, Louis said. At other neurology clinics, the number is as high as 20% and second only to headaches as the reason for seeking help. To determine if a condition is functional, neurologists identify symptoms that don't match with physiological movement disorders. In Boylan's case, the cyst was on the right side of her brain, which meant it should only cause symptoms on the left side of her body. The right leg weakness she experienced at tai chi, for instance, didn't fit with this.
Then there are a series of tests that can help determine if movements are genuinely involuntary. One group of tests is designed to distract a patient. A patient with a left arm tremor, as was the case with Boylan, might be asked to extend that arm out and then use the hand on the other arm to tap out a sequence of numbers. As the neurologist calls out for one tap, four taps, two taps and so on, he or she is watching to see if the tremor on the left side stops as the patient focuses on the tapping.
When Louis performed these tests on Boylan, she knew exactly what he was assessing. She administered the same tests to her own patients. To Boylan, the fact Louis was even doing the tests meant he had already concluded some of her symptoms were psychogenic. "I knew I was going to fail," she said later, adding that the tests are not always a valid indicator. "I tried so hard to do things properly that it can look extreme." Louis observed that Boylan's tremor stopped when she was distracted. "If something is truly involuntary, it should persist whether someone is paying attention or not," Louis told me. He agreed with Boylan that the tests are not foolproof, but said that they are useful in evaluating a case.
In his initial assessment of Boylan, Louis referenced the brain cyst and possible medication-induced effects as well as the possibility that "something else is going on here." The difficulty, he noted, was "piecing it all together."
To help solve this puzzle, with Louis' encouragement, Boylan consulted two neurosurgeons. The first, at Columbia Presbyterian, wrote the cyst might be playing a role in her tremors but warned surgery should only be considered as a "last resort." The second, at Mount Sinai, was skeptical the cyst was playing a role, writing, "It is difficult for me to pin the presence of this cystic lesion on her worsening symptoms."
After the appointments with the surgeons, Boylan returned to see Louis on Nov. 14, 2013. Louis told her he saw some "psychiatric overlay" in her symptoms and said there may be something "organic beneath a lot of overlay," according to his notes. He estimated that perhaps 70% of her symptoms were psychiatric in nature. He doubted the brain cyst was causing her rapidly worsening symptoms. It "doesn't fit," he wrote. He noted Boylan "was not happy about this but seems to have accepted it during subsequent emails/phone calls."
Louis told me that Boylan's case was "very complicated" because some of her symptoms and the cyst in her brain were rare. "Her syndrome is difficult to neatly put in one box," he said. "That is why she has defied diagnosis and had a difficult time." A psychogenic diagnosis, he said, is hard for patients because "there is a feeling with people that it is not real, it is all in our head and imaginary and undervalues and devalues what they are going through. No one wants that."
While Parkinson's is treated with medications such as levodopa, patients determined to have a functional or psychogenic condition are often prescribed psychological regimens such as cognitive behavioral therapy. Louis said he has worked successfully with a Columbia psychiatrist to treat functional patients. "We have had patients unable to walk who were walking out two weeks later," he said. Louis said he discussed Boylan's case with her psychiatrist to share his evaluation of her situation and to coordinate medications. Her psychiatrist referred her to behavior therapy, Boylan said. "I did a round," she said. "It helped me tolerate problems but did not change them."
The more Boylan tried to convince others that the cyst was causing her problems, the more she felt she was viewed with suspicion. It became an obsession. Louis once remarked to Boylan that no one in the world knew as much about the square inch of brain where the cyst was located as she did.
Despite their clashes, Boylan respected Louis. When he delivered his diagnosis, it caused her to second-guess her theory about the cyst. She also believed that some of her doctors used her bipolar disorder to cast doubt on her complaints. Her symptoms worsened and the stress overwhelmed her. On Dec. 9, she was admitted to the emergency room at St. Luke's Hospital with severely elevated blood pressure and stress-induced cardiomyopathy, a heart muscle disease that makes it harder to pump blood. When a cardiologist inquired if she was under stress, Boylan tearfully told her, "My doctors think I am hysterical."
As 2014 wore on, Boylan needed increased doses of levodopa to get the relief she first experienced when self-treating her double vision. It was a vicious circle. She needed the medicine to help with her with her lack of balance, which was causing her to fall, as well as her vision and left arm tremor. But the side effects from the medicine were severe.
On a Sunday afternoon in September 2014, Boylan stumbled out of a taxicab onto the sidewalk in front of the emergency room at NewYork-Presbyterian/Columbia University Medical Center. A couple of ambulance workers noticed she was having difficulty and helped her into a wheelchair.
Boylan was gaunt. She had lost more than 30 pounds since the beginning of the year. In the preceding days she slept little. Her body was twisting up in uncomfortable and unusual positions, making it hard to walk. Her head jerked and her knees pushed together as she bent forward. She was unable to control the movements. In a brief video taken after she was admitted to the hospital, Boylan leaned against a wall with her head slumped awkwardly to the side as she waited to use a bathroom.
To the doctors who attended to Boylan, her condition was disturbing. They knew her as an accomplished neurologist who trained and mentored a new generation of doctors. She was a familiar face at Columbia, having done her medical residency there in the late 1990s. On this day, Boylan appeared paranoid and agitated. She argued with doctors about medication and their assessment of her condition. She complained that her husband thought she was crazy.
Her case defied an easy diagnosis. "She is a quite complicated movement disorders patient," one of the treating physicians at Columbia noted.
The attending neurologist at the hospital that weekend thought Boylan was suffering from "mild psychosis" with contributing factors that included fatigue and the side effects of medication. The doctors noted Boylan recently received a distressing email about a former patient who was dying; the implication was that this was a possible source of a psychogenic effect. Louisa Gilbert, a friend of Boylan's, said that when she arrived at the hospital she found doctors treating Boylan as a "psych case."
Boylan left the hospital after one night. In the following weeks, her condition worsened. She stopped working and was largely homebound. Her diet was poor, consisting primarily of ice cream and grapefruit juice, and she continued to lose weight. She was again having trouble reading and developed severe writer's cramp that she attributed to the brain cyst.
Boylan grew dependent on others to take care of her, including Gilbert, whom she first met at boarding school. A professor of social work at Columbia University, Gilbert always admired Boylan for her resiliency. Boylan went through her last two years of medical school while a single parent. She never missed work. Now there were days when Gilbert would show up at Boylan's apartment and find her friend writhing on the floor, unable to get up.
"It was so bewildering," Gilbert said. "What the hell is going on?"
By December, Boylan was spending hours lying on the floor of her apartment while sipping orange juice to speed up the absorption of the levodopa she was taking to stave off muscle spasms. She was now separated from her husband; they would later divorce. Alone and unable to work, Boylan despaired and made plans for suicide. "I had and am still having emotional meltdown over this loss of profession/vocation/self-definition," she wrote in an email to her brother, Ross, in California.
Ross and Laura Boylan were the only children of a corporate lawyer and a homemaker. For most of their youth they lived in an apartment near the Metropolitan Museum of Art on Manhattan's Upper East Side. Their mother suffered from severe mental illness and was hospitalized a number of times. Their father was an alcoholic. The couple often argued. Laura was happiest when she was out of the apartment, and she often spent summers away from the city.
The Boylan siblings both attended boarding school at Phillips Academy in Andover, Massachusetts, but rarely interacted there. Ross was two years older and each of them moved in their own circles. Laura returned to New York City to attend Barnard College. Ross went on to Harvard University and then moved permanently to the west coast.
In her December 2014 email to her brother, Boylan wrote "bad news" in the subject line. She said the brain cyst was causing "more and more problems." She shared that she gave up clinical practice because of "fatigue, stamina, vision and other problems." She said there was a "small possibility of neurosurgery" but she wasn't sure it was worth the risk, and she doubted any surgeon would take the chance anyway. She said her symptoms were getting progressively worse and there was no cure.
Ross Boylan responded with a short note that ended with a touch of optimism. "The future is not written," he wrote.
The email from his sister caught Ross Boylan off guard. "I thought she was doing OK," he said in an interview. "Then she sends me this email, oh by the way every single sphere of my life is collapsing." The doctors she consulted seemed to be uniform in their view that her brain cyst was irrelevant and that removing it would be pointless and probably dangerous, Ross Boylan said. "It's impossible to operate, and nothing could be done about it," he said. Most concerning, it seemed to him that the "fight had gone out" of his sister.
Ross Boylan is a research statistician at the University of California, San Francisco, and his department frequently works with doctors at the medical school there. Among all the specialists at the university, he figured there must be one who could help his sister. He didn't tell Laura that he was going to try to help. He was afraid she would tell him not to bother, and he didn't want to get her hopes up in the event his efforts failed.
On a webpage for the university neurology department, Boylan came across a group photo that included his boss. It turned out his boss had done some statistical work for the research team of neurosurgeon Michael Lawton. An introduction was made. Ross Boylan gave Lawton what information he had about is sister's condition, and within days Laura Boylan was in contact with the surgeon by phone and email.
"My hunch is that operating on the cyst will help and I am ready to proceed," Lawton wrote her. "You can appreciate that we surgeons like to be certain that our efforts are going to be curative, and in your case I can't be sure. Nonetheless, I think this operation will be safe and I am ready to move forward whenever you are."
Boylan decided to go ahead with the surgery and booked a flight to San Francisco.
Lawton told me that the cyst was located in an area of brain circuitry that is disturbed in Parkinson's patients and could be the cause of her movement disorders and double vision. "It fits," he said. "It's right where that kind of lesion would produce those symptoms." Nonetheless, he said he cautioned Boylan the procedure could be done perfectly with no complications yet have no therapeutic effect.
Louis said he wasn't certain if the surgery was a good idea. "I deferred to the surgeon," he said. "There was little margin of error, and that made it a very complex decision." Others close to Boylan were concerned about the speed in which the decision to operate was made and that Boylan decided to go ahead before even meeting with Lawton in person. Boylan herself confessed in an email to a colleague days before the operation that she felt "in over my head" in arranging the surgery and was "beginning to think this is not a good idea."
On Jan. 9, 2015, Lawton and his team performed a nearly five-hour craniotomy on Boylan in which part of the bone in her skull was removed to expose her brain. The cyst was drained and a piece cut out to prevent it from accumulating fluid in the future.
Boylan was worse off in the weeks after the surgery. The awkward, twisting movements persisted. She couldn't use her right arm. She didn't know if she would recuperate to a life worth living.
About a month after the surgery, Boylan saw neurologist Rebecca Gilbert at NYU Langone Medical Center. Boylan arrived for the appointment wearing an eye patch and an arm sling.
Gilbert's notes of the encounter make it clear she thought Boylan's symptoms, even after the surgery, might be psychogenic. A right side tremor was "inconsistent" and abnormal movements were "variable and erratic" and only "present during the formal exam." In contrast, when "patient is telling her story, there are no abnormal involuntary movements." Gilbert wrote that she was "very concerned that at least part of this neurologic picture is psychogenic in nature."
By mid-March, just a month later, Boylan's condition improved significantly. On March 21, she sent an email to Lawton with the subject line "have turned a corner." She said her symptoms were improving and she was "back out and about in the world." She told him he had "given me my life back." She also criticized those who questioned the wisdom of her decision to undergo the operation. "I confess that, in accord with my own pre-existing bias, some neurology pals have thought I must have found a cowboy who took a lucky long shot," Boylan wrote. "I correct them carefully in detail."
Ten days later, Boylan saw Gilbert for a follow up appointment. Gilbert wrote that Boylan "returns looking very well. She feels well neurologically and psychiatrically. She attributes her improvement to the surgery." Gilbert declined comment on Boylan's case.
By June, Boylan was back to work.
On a Sunday morning this spring, Boylan sits at a conference table in the neurology department at Bellevue Hospital in Manhattan, the country's oldest public hospital. The room is sparse save for a large, formal portrait of the former head of neurosurgery. The painting does not escape Boylan's notice. Like many of the leading figures in neurology, the former official is a white male.
Boylan, 57, is dressed casually in black pants and a flower-print blouse. A lanyard with a Bellevue identification tag hangs from her neck. On this morning, she is the attending neurologist, overseeing medical residents. In addition to Bellevue, Boylan does part-time stints at a hospital in Duluth, Minnesota, and a VA facility in Albany. She has regained the weight she lost when her illness was at its worst, as well as the mental sharpness that dulled during that time.
Across the table, a resident briefs her about a woman who arrived in the emergency room the day before. The exchange is thick with medical terms, but there is a clear point to the back and forth: They are trying to determine if the woman's symptoms are functional. The patient complained of a generalized burning sensation. That's the type of vague complaint that could point to a psychogenic diagnosis. On the other hand, the resident said the patient reported having problems with her coordination, but not with her strength. People with functional disorders might also indicate they were weak, because they tend to have a wide array of complaints.
When the resident pulls up a scan of the woman's brain on a screen mounted on the wall, Boylan points to an area that she describes as a "little bent" with a "kink in it." This is potential evidence, she says, of a cerebral fluid leak. The woman recently underwent an epidural injection and fluid leaks are a known complication of the procedure. Boylan talks to the patient and comes away confident a leak is the problem. The remedy is intense rehydration. The patient improves, and is released the next day.
Afterward, Boylan said her own experience has prompted her to evaluate cases more carefully. She said she also has to guard against failing to recognize cases that may, in fact, be psychogenic. "I have to be careful not to lead the patient," she said.
After her surgery, Boylan requested copies of her medical records from most of the doctors who treated her over the prior five years. She was angered to find that several of them highlighted her history of bipolar disorder — in some cases it was the first item entered — and discounted the role of the brain cyst in her symptoms. Boylan believes that many of her doctors discounted the brain cyst because of a predisposition toward diagnosing psychogenic conditions in women, and that her case is symptomatic of gender bias in the field of neurology.
"I don't believe I would be treated this way if I was a man," she said. By sharing her experience publicly, Boylan is determined to counter what she views as an ingrained suspicion of symptoms reported by women that dates back to the use of the word "hysterical" to demean them as emotionally and physically weak and prone to exaggeration. She calls it a "pervasive and potentially lethal bias" in neurology.
Gender inequality is rife in neurology. Female neurologists were last in pay and had the biggest salary gap between men and women, in a 2016 survey of salaries by specialty and gender at medical schools.
The American Academy of Neurology has had only one female president in its 71-year history even though women now constitute 40% of the professional society's membership. Female neurologists are also disproportionately underrepresented in awards handed out by the academy, according to a study last year. In 24 of the 28 years studied, the recipients of the academy's lifetime achievement awards did not include a single woman.
The more difficult question is whether this inequality spills over to clinical practice. Boylan received care from both male and female specialists, and her medical records are devoid of outright indications of gender bias. Boylan said female neurologists are trained "in a paradigm of thinking generated by men for men" in which the same symptoms are viewed differently in men and women.
Louis said there was no gender bias in his evaluation of Boylan. He said functional disorders are "far more common" in women and "if a person is that gender I am more comfortable with that diagnosis." Still, gender is "only one of many, many pieces of information" used to make a diagnosis, he said.
Dr. Sarah Lidstone, a specialist in functional movement disorders at Toronto Western Hospital, said it is "impossible to say" that gender bias doesn't exist in diagnoses of this condition. "That does factor into that." Still, she said, there appear to be real gender differences. "We don't know why. It's complicated."
Researchers are working to figure out whether women are disproportionately diagnosed with functional disorders.
"We don't know what is right or the whole truth necessarily," said Dr. Mark Hallett, a senior investigator at the National Institute of Neurological Disorders and Stroke. He said one study underway is looking at whether women suffer more childhood trauma, particularly sexual abuse, than men and if that is a cause of functional disorders. He said he didn't believe that gender bias played a significant role in the fact that women receive the diagnosis more often than men, and he said other explanations may include hormonal differences between the sexes or that women may be more likely to seek treatment.
It's impossible to know for certain how Boylan got better. The workings of the mind are complex and our understanding of diseases of the brain and of psychology is constantly evolving. It may be that, as Louis suspected, a combination of factors was at work that include both a psychogenic component and the brain cyst.
"To me, where she is now is nothing short of a miracle," said Boylan's friend, Gilbert.
I asked Lawton if Boylan might have experienced a placebo effect from the surgery. While that can happen, he said, Boylan's relief and turnaround "was pretty significant to the point that it outlasted the typical duration of most placebo effects which I think run their course."
Louis said he believes the surgery "did do some good" and at a minimum removed a cyst that was in a dangerous position. But he is not persuaded it is the main reason for Boylan's turnaround. He suspects many of her symptoms were functional, and sometimes patients with that diagnosis get better over time.
Boylan is convinced her cyst and reactions to medicine to treat the symptoms caused by it were the primary sources of her illness. She views her story as a cautionary tale: She was a woman with means, a degree in medicine and a cyst in her brain. Still, she said, "that did not spare me from being cast as hysterical."
David Armstrong is a senior reporter at ProPublica specializing in health care investigations.
Methodist Le Bonheur Healthcare sued thousands of low-income patients, including dozens of its own employees, over five years. The hospital system just announced major policy changes in response.
MEMPHIS, Tenn. — Methodist Le Bonheur Healthcare will raise the minimum wage it pays employees, dramatically expand its financial assistance policy for hospital care and stop suing its own employees for unpaid medical debts, hospital officials announced Tuesday.
The broad reforms were prompted by a MLK50-ProPublica investigation that detailed how the nonprofit hospital system used aggressive collections tactics, including the courts, to pursue unpaid medical bills from poor patients, including its own employees.
"We were humbled to learn that while there's so much good happening across our health system each day, we can and must do more," Methodist CEO and president Michael Ugwueke said on a call with reporters Tuesday.
Yet the faith-based hospital, which temporarily suspended collection lawsuits this month, said it would not altogether stop such lawsuits, as have some nonprofit hospitals that have been the focus of similar investigations.
Methodist also left unanswered several questions, including whether the hospital will refile the 100-plus lawsuits its attorneys dropped over the past month or whether it will revisit cases it has already filed or those in which it is garnishing the wages of low-income workers.
According to an MLK50-ProPublica analysis of Shelby County General Sessions Court records, the hospital system, which is affiliated with the United Methodist Church, filed more than 8,300 lawsuits between 2014 and 2018. That was more than all but one creditor during that five-year period.
Methodist's old financial assistance policy also all but ignored patients with any form of health insurance, no matter their out-of-pocket costs, which was more restrictive than the policies of competitor Baptist Memorial Health Care, as well as Regional One Health, the county's public hospital.
Starting Aug. 1, financial assistance will be provided to patients earning up to 250% of the federal poverty line, or $53,325 for a family of three. The previous policy applied to patients with income of up to 125% of the federal poverty line. Methodist said more than half of the population of greater Memphis would be eligible for assistance under the new policy.
In a press release, Ugwueke said that the new policy "will better reflect the needs and circumstances of those we serve."
The hospital said it would continue to pursue payment from those "who have the ability to pay," but it did not immediately answer questions about how the hospital would determine patients' income and eligibility. The hospital said its new approach would provide assistance to those with insurance, but it declined to answer a question about whether that was formally enshrined in the policy or left to the discretion of staff.
When it does file suit and win a judgment, Methodist said it will no longer accept court-ordered interest on medical debt nor will it seek to collect lawyers' fees or court costs from patients.
Shelby County Mayor Lee Harris applauded Methodist's decision to raise employee pay and said he hoped it would prompt other organizations to follow suit.
"This announcement reflects Methodist's values and, what's more, our community's values," Harris said in a statement. "Lifting wages to a livable standard is not controversial and it is increasingly a bi-partisan issue."
Consumer advocates praised the hospital's decision to augment its financial assistance, but they said many questions remain.
"More clarity here would be great," Jessica L. Curtis, a senior adviser at Community Catalyst, a national advocacy organization, and Mark Rukavina, business development manager at Community Catalyst's Center for Consumer Engagement in Health Innovation, said in an email. For instance, if a court orders a defendant to pay interest, would the hospital actually not collect it?
The devil will "be in the details," they wrote.
It's unclear whether the reforms announced Tuesday will help Carrie Barrett, who makes $9.05 an hour at Kroger. The hospital sued her in 2010 for a $12,000 hospital bill. The bill grew to more than $33,000 as interest and attorney's fees continued to be tacked on.
Hospital officials declined to talk about specific cases. Barrett said Tuesday afternoon that she had not been contacted by the hospital or its attorneys.
"I'm really glad that Methodist got showed up in the way they did, because it was just so unfair, going to court and seeing all these folks suffering," she said.
Methodist is the region's second-largest private employer, operating five hospitals in Shelby County. Its lowest-paid employees make $10 an hour and 17% of its 12,500 workers made less than $15 an hour, the hospital reported in response to MLK50's 2018 Living Wage Survey.
Starting in September, the hospital will raise its minimum wage from $10.08 to $13.50. By Jan. 1, 2021, the minimum wage will rise to $15 an hour. Raising the minimum wage and adjusting other salaries to account for wage compression is estimated to cost the hospital $14 million a year, said Carol Ross-Spang, Methodist's chief human resources officer. The wage increase would affect more than 2,000 employees.
The United Methodist Church's Social Principles, which state the church's position on everything from climate change to the death penalty, speak directly to what employees should earn. "Every person has the right to a job at a living wage," it states.
The hospital also said it would create clearer career paths for employees "to gain the skills, experience, knowledge, and education needed to advance to even higher paying positions," Ugwueke said in a statement. Hospital officials did not offer details.
ProPublica is a nonprofit newsroom that investigates abuses of power. Sign up for ProPublica's Big Story newsletter to receive stories like this one in your inbox as soon as they are published.
Last September, ProPublica examined Dr. Michael Holick's work as an expert witness for alleged abusers. In the wake of the article, his hospital notified Massachusetts' medical board that it restricted his privileges.
A Boston hospital has notified the Massachusetts medical board that it has restricted the work of a world-renowned endocrinologist criticized for espousing controversial theories as an expert witness for people accused of child abuse.
The action against Dr. Michael Holick is cited on his profile page on the board's website under "health care facility discipline." The listing is intended to alert members of the public who visit the site that Boston Medical Center, where Holick practices, has restricted his rights or privileges.Last September, ProPublica and The New Yorker reported that
Holick had testified in hundreds of child abuse cases worldwide and almost always blamed broken bones and other injuries on a rare genetic disorder. At the time, Boston Medical Center said that it had barred Holick from treating or evaluating children under age 13 beginning in May 2017. But Holick continued evaluating children in suspected abuse cases as part of an approved research project, and it now turns out that the discipline was not reported to the board until this past February.
A hospital spokesman, in an email last week, wrote that the filing with the medical board "is consistent with" the information it provided ProPublica last year. The spokesman, David Kibbe, also indicated that Holick is still allowed to evaluate children who participate in his research project.
The medical board requires hospitals to report disciplinary actions within 30 days of taking them. When asked about the 21-month gap between the hospital barring Holick from treating children and the report to the medical board, Kibbe responded, "We complied with our reporting obligations." He offered no further explanation.
A spokesman for the Massachusetts Board of Registration in Medicine said the details of the hospital action against Holick are confidential.
Holick, who did not respond to calls or emails seeking comment for this story, is best known in medical research circles for pioneering work related to vitamin D. He discovered the active ingredient in the vitamin, leading to treatments for bone disease in kidney patients. He also figured out that orange juice helps the body absorb vitamin D, a finding that led to the U.S. Food and Drug Administration approving vitamin D-fortified orange juice.
Earlier this decade, Holick began working as an expert witness in child abuse cases in the U.S. and abroad. He has consulted or testified in more than 300 cases, always on behalf of the accused. As of last September, he had never concluded that a child was abused, and he had almost always attributed the injuries to Hypermobile Ehlers-Danlos syndrome, a condition that affects the connective tissues of the skin, bones and joints and has been linked to bone fragility in adults.
The ProPublica-New Yorker article focused on a social services investigation in South Carolina that found that 3-week-old twins had allegedly been abused. The parents consulted Holick, who concluded that both babies had Ehlers-Danlos, and that fractures attributed to abuse could have been caused by bone fragility associated with the genetic condition. Nearly eight months later, one of the twins suffered a severe brain injury and the child's father was charged with abuse to inflict great bodily injury upon a child. That criminal case is pending.
"Thousands, if not tens of thousands," of parents worldwide have been falsely accused of fracturing their children's bones, Holick told ProPublica last year. "It's just terrible. I feel so sorry for these parents."
His work has drawn rebukes from other physicians who specialize in treating patients with the genetic disorder. They cite a lack of research supporting Holick's view that Ehlers-Danlos can cause broken bones in very young children. Holick has also been criticized for diagnosing the condition in children he didn't examine in person.
Boston Medical Center is the teaching hospital affiliated with Boston University School of Medicine, where Holick is a longtime faculty member. A spokeswoman for the medical school said Holick remains on the faculty.
Boston University has defended Holick's right to testify about his Ehlers-Danlos theory in court. The dean of the medical school, Karen Antman, in a letter to another physician critical of Holick, wrote that she didn't need to know the details of his expert defense work. "As a member of the Boston University School of Medicine faculty, academic freedom allows Dr. Holick to espouse his views without censorship from the University," she wrote.
David Armstrongis a senior reporter at ProPublica specializing in health care investigations.
Health insurers are regarded as fierce defenders of healthcare dollars. But the case of David Williams shows one reason America's healthcare costs continue to rise. The personal trainer spent years posing as a doctor and billing the nation's top insurers, making off with millions.
This story was co-published with Vox and first appeared on Friday, July 19, 2019 in ProPublica.
Ever since her 14-year marriage imploded in financial chaos and a protective order, Amy Lankford had kept a wary eye on her ex, David Williams.
Williams, then 51, with the beefy body of a former wrestler gone slightly to seed, was always working the angles, looking for shortcuts to success and mostly stumbling. During their marriage, Lankford had been forced to work overtime as a physical therapist when his personal training business couldn't pay his share of the bills.
So, when Williams gave their three kids iPad Minis for Christmas in 2013, she was immediately suspicious. Where did he get that kind of money? Then one day on her son's iPad, she noticed numbers next to the green iMessage icon indicating that new text messages were waiting. She clicked.
What she saw next made her heart pound. Somehow the iPad had become linked to her ex-husband's personal Apple device and the messages were for him.
Most of the texts were from people setting up workouts through his personal training business, Get Fit With Dave, which he ran out of his home in Mansfield, Texas, a suburb of Fort Worth. But, oddly, they were also providing their birthdates and the group number of their health insurance plans. The people had health benefits administered by industry giants, including Aetna, Cigna and UnitedHealthcare. They were pleased to hear their health plans would now pay for their fitness workouts.
Lankford's mind raced as she scrolled through the messages. It appeared her ex-husband was getting insurance companies to pay for his personal training services. But how could that be possible? Insurance companies pay for care that's medically necessary, not sessions of dumbbell curls and lunges.
Insurance companies also only pay for care provided by licensed medical providers, like doctors or nurses. Williams called himself "Dr. Dave" because he had a Ph.D. in kinesiology. But he didn't have a medical license. He wasn't qualified to bill insurance companies. But, Lankford could see, he was doing it anyway.
As Lankford would learn, "Dr. Dave" had wrongfully obtained, with breathtaking ease, federal identification numbers that allowed him to fraudulently bill insurers as a physician for services to about 1,000 people. Then he battered the system with the bluntest of ploys: submit a deluge of out-of-network claims, confident that insurers would blindly approve a healthy percentage of them. Then, if the insurers did object, he gambled that they had scant appetite for a fight.
By the time the authorities stopped Williams, three years had passed since Lankford had discovered the text messages. In total, records show, he ran the scheme for more than four years, fraudulently billing several of the nation's top insurance companies — United, Aetna and Cigna — for $25 million and reaping about $4 million in cash.
In response to inquiries, Williams sent a brief handwritten letter. He didn't deny billing the insurers and defended his work, calling it an "unprecedented and beneficial opportunity to help many people."
"My objective was to create a system of preventative medicine," he wrote. Because of his work, "hundreds of patients" got off their prescription medication and avoided surgery.
There are a host of reasons healthcare costs are out-of-control and routinely top American's list of financial worries, from unnecessary treatment and high prices to waste and fraud. Most people assume their insurance companies are tightly controlling their healthcare dollars. Insurers themselves boast of this on their websites.
In 2017, private insurance spending hit $1.2 trillion, according to the federal government, yet no one tracks how much is lost to fraud. Some investigators and healthcare experts estimate that fraud eats up 10% of all healthcare spending, and they know schemes abound.
Williams' case highlights an unsettling reality about the nation's health insurance system: It is surprisingly easy for fraudsters to gain entry, and it is shockingly difficult to convince insurance companies to stop them.
Williams' spree also lays bare the financial incentives that drive the system: Rising healthcare costs boost insurers' profits. Policing criminals eats away at them. Ultimately, losses are passed on to their clients through higher premiums and out-of-pocket fees or reduced coverage.
Insurance companies "are more focused on their bottom line than ferreting out bad actors," said Michael Elliott, former lead attorney for the Medicare Fraud Strike Force in North Texas.
As Lankford looked at the iPad that day, she knew something else that made Williams' romp through the healthcare system all the more surprising. The personal trainer had already done jail time for a similar crime, and Lankford's father had uncovered the scheme.
Scanning her ex-husband's texts, Lankford, then 47, knew just who to call. During the rocky end of her marriage, her dad had become the family watchdog. Jim Pratte has an MBA in finance and retired after a career selling computer hardware, but even the mention of Williams flushed his face red and ratcheted up his Texas twang. His former-son-in law is the reason he underwent firearms training.
Lankford lived a few minutes away from her parents in Mansfield. She brought her dad the iPad and they pored over message after message in which Williams assured clients that their insurance would cover their workouts at no cost to them.
Lankford and Pratte, then 68, were stunned at Williams' audacity. They were sure the companies would quickly crackdown on what appeared to be a fraudulent scheme.
Especially because Williams had a criminal record.
In early 2006, while Williams and Lankford were going through their divorce, the family computer started freezing up. Lankford asked her dad to help her recover a document. Scrolling through the hard drive, Pratte came upon a folder named "Invoices," and he suspected it had something to do with Williams.
His soon to be ex-son-in-law had had a promising start. He'd wrestled and earned bachelor's and master's degrees at Boise State University, and a Ph.D. at Texas A&M University, before landing a well-paying job as a community college professor in Arlington. But the glow faded when the school suddenly fired him for reasons hidden by a confidential settlement and by Williams himself, who refused to reveal them even to his wife.
Out of a job, Williams had hustled investments from their friends to convert an old Winn-Dixie grocery store into a health club called "Doc's Gym." The deal fell apart and everyone lost their money. The failure was written up in the local newspaper under the headline: "What's up with Doc's?"
Inside the "Invoices" folder, Pratte found about a dozen bills that appeared to be from a Fort Worth nonprofit organization where his daughter and Williams took their son Jake for autism treatment. As Pratte suspected, the invoices turned out to be fake. Williams had pretended to take Jake for therapy, then created the false bills so he could pocket a cash "reimbursement" from a county agency.
In November 2008, Williams pleaded guilty in Tarrant County District Court to felony theft. He was sentenced to 18 months in jail and was released on bail while he appealed.
Things took an even darker turn about two years later when Williams and Lankford's 11-year-old son showed up to school with bruising on his face. Investigators determined that Williams had hit the boy in the face about 20 times. Williams pleaded guilty to causing bodily injury to a child, a felony, which, coupled with the bail violation, landed him in jail for about two years.
The time behind bars didn't go to waste. Williams revised the business plan for Get Fit With Dave, concluding he needed to get access to health insurance.
Williams detailed his plans in letters to Steve Cosio, a tech-savvy friend who ran the Get Fit With Dave website in exchange for personal training sessions. Cosio, whose name later popped up on Lankford's son's iPad, kept the letters in their original envelopes and shared them with ProPublica. He said he never suspected Williams was doing anything illegal.
In his letters, Williams said that when he got out, instead of training clients himself, he would recruit clients and other trainers to run the sessions. "It has the potential for increased revenue."
He asked Cosio to remove the term "personal training" from his website in another letter, adding "95 percent of my clients are paid for by insurance, which does not cover 'personal training,' I have to bill it as 'therapeutic exercise.' It is the same thing, but I have to play the insurance game … Insurance pays twice as much as cash pay so I have to go after that market."
Williams downplayed his child abuse conviction — "I can honestly say that I am the only one in here for spanking their child" — and included a dig at his ex-father-in-law, Pratte: "an evil, evil man. He is the reason for my new accommodations."
Williams told Cosio he needed to raise a quick $30,000 to pay an attorney to get him access to his children. "I will need to get a bunch of clients in a hurry."
To set his plan in motion, Williams needed what is essentially the key that unlocks access to healthcare dollars: a National Provider Identifier, or NPI number.
The ID number is little known outside the medical community but getting one through the federal government's Medicare program is a rite of passage for medical professionals and organizations. Without it, they can't bill insurers for their services.
One would think obtaining an NPI, with its stamp of legitimacy, would entail at least some basic vetting. But Williams discovered and exploited an astonishing loophole: Medicare doesn't check NPI applications for accuracy — a process that should take mere minutes or, if automated, a millisecond. Instead, as one federal prosecutor later noted in court, Medicare "relies on the honesty of applicants."
Records show Williams first applied for an NPI under his own name as far back as 2008. But it wasn't until 2014 that Williams began to ramp up his scheme, even though now he wasn't just unlicensed, he was a two-time felon. He got a second NPI under the company name, Kinesiology Specialists. The following year, he picked up another under Mansfield Therapy Associates. In 2016, he obtained at least 11 more, often for entities he created in the areas where he found fitness clients: Dallas, Nevada, North Texas and more. By 2017, he had 20 NPIs, each allowing him a new stream of billings.
For every NPI application, Williams also obtained a new employer identification number, which is used for tax purposes. But he never hid who he was, using his real name, address, phone number and email address on the applications. He added the title "Dr." and listed his credentials as "PhD." Under medical specialty he often indicated he was a "sports medicine" doctor and provided a license number, even though he wasn't a physician and didn't have a medical license.
Medicare officials declined to be interviewed about Williams. But in a statement, they acknowledged that the agency doesn't verify whether an NPI applicant is a medical provider or has a criminal history. The agency claims it would need "explicit authority" from the Department of Health and Human Services to do so — and currently doesn't have it. Regulations, and potentially the law, would need to be revised to allow the agency to vet the applications, the statement said.
Medicare does verify the credentials of physicians and other medical providers who want to bill the agency for their Medicare patients.
To those charged with rooting out fraudsters, the current regulations seem like an invitation to plunder.
"Medicare has to make sure that the individuals who apply for NPIs are licensed physicians — it's that simple," said Elliott, the former prosecutor who ran about 100 healthcare fraud investigations.
Elliott, who now does white-collar criminal defense, said he knows of two other cases currently under federal investigation in which non-licensed clinic administrators lied to obtain NPI numbers, then used patients' information to file false claims worth millions.
Medicare warns NPI applicants that submitting false information could lead to a $250,000 fine and five years in prison. But since Medicare started issuing NPIs in 2006, officials said they could not identify anyone who had been sanctioned.
So, for those bent on fraud, the first step is easy; the online approval for an NPI takes just minutes.
Williams got out of jail in November 2012 and launched an aggressive expansion with an irresistible pitch: Time to get those private personal training sessions you thought you couldn't afford!
"Now accepting most health insurance plans," his Get Fit With Dave website announced. He added a drop-down menu to his site, allowing potential clients to select their health insurance provider: Aetna. Blue Cross Blue Shield. United.
He began building a team, soliciting trainers from the strength and conditioning department at Texas Christian University. He met with new recruits at local fast food joints or coffee shops to set them up. To the trainers, the business appeared legit: They even signed tax forms. Before long, Williams' network stretched throughout Texas and into Colorado, Idaho and Nevada.
One Fort Worth trainer recalled meeting Williams through one of his clients, a Southwest Airlines flight attendant. Williams, he said, seemed like a real doctor, and it wasn't hard to imagine an insurer's wellness program covering fitness. Plus, it was good money — about $50 an hour and Williams paid him for multiple clients at once if he did boot camps, said the trainer, who asked that his name not be used so he wouldn't be tarnished by his association with Williams. Williams, he said, even gave him an iPad, with "Kinesiology Specialists" etched on the back, to submit bills and paid him via direct deposit.
Clients came to Williams through his business cards, his website and word-of-mouth. Williams, records show, quickly verified if their insurance companies would cover his fees — although he didn't tell clients that those fees would be billed as medical services, not personal training. To ensure the clients paid nothing, he waived their annual deductibles — the portion patients pay each year before insurance kicks in. Authorities said Williams banked on being able to file enough claims to quickly blow through their deductibles so he could get paid.
Meredith Glavin, a flight attendant with Southwest, told the authorities she got in touch with Williams after her co-workers said insurance was covering their workouts. After providing her name, address and insurance information on the Get Fit With Dave website, Williams emailed back with the good news: "Everything checks out with your insurance. My services will be covered at no cost to you."
During a follow-up phone call, Glavin said, they discussed her fitness and weight loss goals and then Williams connected her with a trainer. The workouts were typical fitness exercises, she said, not treatment for a medical condition. But insurance claims show Williams billed the sessions as highly complex $300 examinations to treat "lumbago and sciatica," a condition in which nerve pain radiates from the lower back into the legs.
He used his favorite billing code — 99215 — to bill Glavin's insurer, United, the claims show. The code is supposed to be used less often because it requires a comprehensive examination and sophisticated medical decision-making, warranting higher reimbursement. In all, Williams used the code to bill United for more than $20.5 million — without apparently triggering any red flags at the insurer. For that code alone, the insurance giant rewarded him with $2.5 million in payments.
Eventually, Get Fit With Dave expanded to about a dozen trainers and around 1,000 patients, said a source familiar with the case. And, court records show, the checks from insurance companies, some over $100,000, kept rolling in.
Williams bought a couple of pick-up trucks, a new Harley Davidson motorcycle and a fancy house. But greed didn't seem his only motivation. "I made $50K last week," he wrote in a December 2014 text to a friend. "Seriously it means nothing. It is not about the money. I have had a lot taken away from me, and maybe I am trying to prove something ... Maybe it is my way of giving the finger to everyone???"
A few miles away, his former father-in-law watched Williams' illegal business blossom with growing outrage. Pratte kept his grandson's iPad on his desk, near his computer, and checked it every day. The texts appeared boring, even routine, but Pratte knew they were evidence of ongoing fraud.
"I have another flight attendant friend who is interested in signing up as well," a new client texted to Williams.
"Tell him to show up with his insurance card," Williams replied.
To Pratte, the text messages were a "gold mine." This is the stuff that will really nail his rear end, he recalled thinking as he read the messages. He couldn't wait to share his findings with the insurers. How often do they get cases wrapped up in a bow?
But when he and Lankford began contacting insurers, they were soon bewildered. When Pratte told Aetna that he wanted to report a case of fraud, he said the customer service representative asked for his member number, then told him non-members couldn't report criminal activity. Lankford, who happened to be covered by Aetna, made the complaint, but they say they never heard back.
An Aetna spokesman told ProPublica that the insurer could find no record of Pratte's call but said the company's fraud hotline takes tips from anyone, even anonymous callers.
Lankford sent an email to Cigna's special investigations unit in January 2015 "regarding one of your providers that concerns me." She provided Williams' company name, address, cellphone number, Social Security number and more, and she described his scheme. "He has no medical license or credentials," she wrote. "He was in prison for felony theft."
A supervisory investigator called to ask for the names of personal trainers, which Lankford provided. But, again, there was silence.
Pratte could see many of the clients worked for Southwest and had their benefits administered by United. He jotted down the name, address, phone number, birthdate and member identification number of the potential clients on a yellow legal pad — all the information the insurer and Southwest would need to investigate the fraud. This is so easy, Pratte recalled thinking as he wrote down the details, all they have to do is cross-reference this.
Because Southwest self-funds its benefits, the company was on the hook for the bills, which would eventually total about $2.1 million according to a source familiar with the case. It paid United to administer the company's plan and ensure the claims it covered were legitimate. Pratte said he called the airline in the fall of 2015 and spoke to someone in the human resources department who said they would pass the information to the right people. "That was the last I heard," he said. Southwest declined to comment for this story. It still pays United to administer its benefits.
Pratte started calling United in the fall of 2014 and spoke to a fraud investigator who took the information with interest, he said. But within a couple of weeks he was told she moved to a different position. Pratte continued calling United over the following two years, making about a dozen calls in total, he said. "He is not a doctor," Pratte told whoever picked up the phone. "So, I don't see how he can be filing claims."
In early 2015, Lankford emailed additional information to the investigator. The investigator wrote back, thanking Lankford and saying she forwarded the details to the people who research licenses. "They will investigate further," she said in the email.
Meanwhile, the text messages showed Williams continuing to sign up — and bill for — United members.
Frustrated, Pratte made one final call to United in 2016, but he was told the case was closed. United said he'd have to call the Texas Department of Insurance for any additional details. Pratte had already filed a complaint with the regulator but reached out again. The department told him that because he hadn't personally been defrauded, it would not be able to act on his complaint.
To Pratte, it appeared he had struck out with Aetna, United, Southwest and the Texas Department of Insurance. "I was trying to get as many people as possible to look into it as I could," Pratte said recently. "I don't know if that tells me they are incompetent. Or they don't care. Or they're too busy."
A case summary, prepared by the Texas Department of Insurance, shows it first learned of the Williams case in January 2015 but lacked staff to investigate. A spokesman said the regulator later received Pratte's complaint but didn't pursue it after learning that United had already investigated and closed its case.
Meanwhile, some Get Fit With Dave clients had begun noticing odd claims on their insurance statements.
Nanette Bishop had heard about Williams when a fellow Southwest flight attendant handed her the trainer's business card and said, "You've got to meet Dr. Dave." (Bishop said the Southwest legal department advised her not to speak with ProPublica. Details about her interaction with Williams come from court records.)
Bishop said she started strong with the workouts but "fizzled" quickly. Her daughter, who was also on her plan and signed up for workouts, only did a couple sessions. Bishop said she had a hard time staying consistent because she was traveling a lot — for much of October 2014 she was in Germany. Later, she noticed in her insurance records that Williams had been paid for dozens of sessions over many months, even during the time she'd been abroad.
Bishop texted Williams in January 2015 to tell him he needed to refund all the money. "I never worked out four [times] a week and [my daughter] quit the first week of September," she wrote. Bishop also called United and Southwest Airlines to report the overbilling.
About a month later, Williams received a letter from a subsidiary of United ordering a review Bishop's medical records.
Another client texted Williams with concerns that her United insurance plan had been billed for 18 workouts in December 2015. That couldn't be accurate, the woman wrote. "I had to take December off due to my work schedule and family in town," she wrote. "I understand that people need to be paid but this seems excessive."
While Pratte, Lankford and some of Williams' clients repeatedly flagged bogus bills, the mammoth health insurers reacted with sloth-like urgency to the warnings. Their correspondence shows an almost palpable disinterest in taking decisive action — even while acknowledging Williams was fraudulently billing them.
Cigna appears to have been the quickest to intervene. In January 2015, Cigna sent Williams a letter, noting that he wasn't a licensed medical provider and had misrepresented the services he provided. The insurer said he needed to pay back $175,528 and would not be allowed to continue billing.
"I just got a $175K bill in the mail," Williams texted to a friend. "Cigna insurance has been overpaying me for the past 18 months and they want it back. I knew that they were reimbursing at too high of a rate so I can't really complain."
By then Williams had more than one National Provider Identifier, so he just switched numbers and kept billing Cigna. More than a year later, in May 2016, Cigna sent another letter, saying he now owed $310,309 for inappropriate payments. In total, the company paid him more than $323,000. Williams never gave any of it back. Cigna declined to comment about the Williams case.
Aetna wrote Williams in January 2015 to say it had reviewed his claims and found he wasn't licensed, resulting in an overpayment of $337,933. The letter said there appeared to be "abusive billing" that gave "rise to a reasonable suspicion of fraud." But the insurer also gave him a month to provide documentation to dispute the assessment. When Williams hadn't responded in three months, an Aetna investigator wrote to Williams' attorney, saying, "We are willing to discuss an amicable resolution of this matter," and gave him two more weeks to respond.
That August, an Aetna attorney sent Williams' attorney another letter, noting that Williams had submitted "fraudulent claims" and had continued to submit bills "even after his billing misconduct was identified."
In January 2016 — a year after Aetna first contacted him — Williams agreed to a settlement that required him to refund the company $240,000 "without admission of fault or liability by either party."
But that didn't stop, or even appear to slow, Williams. Not only did he renege on that promise, he picked one of his other NPI numbers and continued to file claims resulting in another $300,000 in payments from Aetna. In total, Aetna paid Williams more than $608,000.
In emails, Ethan Slavin, a company spokesman, didn't explain why Aetna settled with Williams instead of pursuing criminal prosecution. He blamed the insurer's slow response on the lengthy settlement process and Williams' tactic of billing under different organizations and tax identification numbers. Williams did repay some of the money before defaulting, Slavin said.
United, one of the largest companies in the country, paid out the most to Williams. The insurer brought in $226 billion last year and has a subsidiary, Optum, devoted to digging out fraud, even for other insurers. But that prowess is not reflected in its dealings with Williams.
In September 2015, United wrote to Williams, noting his lack of a license and the resulting wrongful payments, totaling $636,637. But then the insurer added a baffling condition: If Williams didn't respond, United would pay itself back out of his "future payments." So while demanding repayment because Williams was not a doctor, the company warned it would dock future claims he would be making as a doctor.
Williams responded a month later, noting that he had a Ph.D. in kinesiology and did rehab, so he met the qualifications of a sports medicine doctor.
United responded in November 2015 with the same argument: he wasn't licensed and thus needed to repay the money, again warning that if he didn't, United would "initiate repayment by offsetting future payments."
Williams took United up on its offer. "Please offset future payments until the requested refund amount is met," he responded.
Then Williams turned to another NPI number, records show, and continued submitting claims to United.
In January 2016, Williams agreed to settle with United and repay $630,000 in monthly installments of $10,000. Inexplicably, the agreement refers to Williams as "a provider of medical services or products licensed as appropriate under the laws of the state of TX" and notes that the settlement doesn't terminate his continued participation in United's programs.
In 2016, Williams obtained a new batch of NPI numbers from Medicare. As usual, he used his real name, address and credentials on the applications. The additional numbers allowed him to continue to make claims to United.
In November 2016, United investigators caught Williams again — twice. They sent two letters accusing him of filing 820 claims between May 2016 and August 2016 and demanded repayment. Again, almost inconceivably, the company threatened to cover his debt with "future payments."
In December 2016, United notified Williams he had only repaid $90,000 of the initial $630,000 he owed and was in default. The following month, United told him he had to pay the remaining $540,000 within 20 days or he could face legal action. Williams replied, saying he wanted to renegotiate the settlement, but the insurer declined. Late that month, United said its inappropriate payments to Williams had ballooned to more than $2.3 million.
A United spokeswoman said it was difficult to stop Williams because he used variations on his name and different organizations to perpetrate the fraud. "He did everything he could not to get caught," Maria Gordon-Shydlo said.
She acknowledged getting the complaints from Lankford and Pratte, as well United members, but defended the response of the company, saying it had eventually referred Williams to law enforcement.
The insurer is continuing "to improve our processes and enhance our systems so we can catch these schemes on the front-end," she said, "before a claim is paid and to recoup dollars that were paid as a result of provider misconduct."
In all, United paid Williams more than $3.2 million — most of it after the insurer had caught him in the act.
But in reality, the losses weren't all United's. Most of the fraud was funded by its client, Southwest.
Many healthcare experts and fraud investigators said they weren't surprised to hear that insurers were slow to stop even such an outlandish case of fraud.
"It's just not worth it to them," said Dr. Eric Bricker, an internist who spent years running a company that advised employers who self-funded their insurance.
For insurance behemoths pulling in billions, or hundreds of billions, in revenue, fraud that sucks away mere millions is not even a rounding error, he said.
And perhaps counterintuitively, insurance companies are loath to offend physicians and hospitals in their all-important networks — even those accused of wrongdoing, many experts have said. They attract new clients by providing access to their networks.
This ambivalence toward fraud, Bricker and others said, is no secret. Scammers like Williams are "emblematic of gazillions of people doing variants of the same thing," Bricker said. Insurers embolden them by using a catch-and-release approach to fraud, in which the insurers identify criminals, then let them go.
Joe Christensen has pursued fraud for both government and commercial insurers, serving as a director in Aetna's Special Investigations Unit, a team of more than 100 people ferreting out fraud, from 2013 to 2018 and as the director of Utah's insurance fraud division for 13 years. Fraud in government programs, like Medicare and Medicaid, gets more publicity, he said, and has dedicated arms of agencies pursuing fraudsters. But the losses may be even greater in the commercial market because the dollar levels are higher, he said.
Some commercial insurers take a passive approach, Christensen said, in part because it's expensive to press a fraud case. At Aetna, he said, investigators would identify cases of apparent fraud, but it was up to the executives and legal team to decide how to handle them. Taking fraudsters to civil or criminal court requires resources, so the company often settled for trying to get repaid through settlements or blocking a suspect provider from billing, he said.
Christensen said while he was at Aetna, investigators almost never sought to partner with law enforcement agencies to pursue criminal cases. Last spring, he became the SIU director for a Southern California-based Medicaid plan called L.A. Care Health Plan, where he was allowed to take a proactive approach. In just about a year, he said, his much smaller team began 37 criminal investigations with law enforcement agencies. The cases are in different stages, but so far there have been seven arrests, four search warrants and one conviction. Christensen recently took a job with an insurer in Utah, where his family lives, so he could be closer to them.
ProPublica asked Aetna how many criminal cases it had pursued in 2017 and 2018. A company official said the question could not be answered because it does not track such cases.
In the spring of 2017, more than four years after Williams first began billing insurers, one of them, United, finally brought him to the attention of the FBI's heath care fraud squad.
One May day, agents from the FBI and the newly engaged Texas Department of Insurance knocked on the door of Williams' sprawling six-bedroom home — a spread he'd boasted to one trainer that he'd purchased with cash. Williams didn't invite them in. He refused to answer questions, claiming his attorney had dealt with the questionable billings.
Undaunted, just days later, Williams used a freshly minted NPI number to send another bill to United. The last known claim he submitted was on June 3, 2017, according to a source familiar with the investigation.
That October, Williams' long run came to an end when he was arrested by the FBI.
The following May, Williams' trial began in the United States District Court for the Northern District of Texas. The prosecution didn't have to make a complex argument. Williams had billed for non-medically necessary services and wasn't a medical provider — a "slam dunk case" said the agent on the case.
But the testimony served as a cheat sheet for how to defraud the health insurance industry and mostly get away with it.
Without irony, the prosecutor, P.J. Meitl, argued that Williams had preyed on a health insurance system that relies "on trust, relies on honesty" when it pays claims.
He called fraud investigators from Aetna, Cigna and United, who testified that their companies auto-pay millions of claims a year. It's not cost effective to check them, they said. "Aetna relies on the honesty of the person submitting the claim verifying that it's true," testified Kathy Richer, a supervisor in Aetna's Special Investigations Unit.
In a similar manner, Medicare trusts that people who apply for NPI numbers are actually medical providers, Meitl told the jury. Medicare "does not investigate or verify whether an individual is actually a healthcare provider before issuing an NPI number."
Williams' attorney, Wes Ball, argued that the case was the sign of a "broken" healthcare system and blamed insurers for making a financial decision not to review Williams' claims before paying them. United failed to protect Southwest's money, Ball said, and "might be a vendor you might not want to hire."
As for the NPI numbers, anyone could have checked Williams' credentials, he said.
The jury wasn't convinced, convicting Williams of four counts of healthcare fraud.
The judge sentenced him to a little more than nine years in federal prison and ordered him to pay $3.9 million in restitution to United, Aetna and Cigna.
Insurers promote themselves as guardians of healthcare dollars. United says on its website it wants to "help employers manage" medical expenses, resulting in "lower costs." Aetna promises employers "affordability." Cigna promises "increased savings."
But private health insurers allow so much fraud that prosecutors use an idiom to describe the rare person who gets caught: "Pigs get fat, hogs get slaughtered."
"Pigs" can steal millions, if they bill just enough to avoid notice. But if they get greedy and bill too many millions, they "become a data outlier," said Elliott, the former fraud task force prosecutor. "You get slaughtered."
Williams took years to reach hog status.
Part of the problem, experts say, is that healthcare fraud is often misunderstood as shafting greedy insurers — not the folks paying for health insurance. Ultimately, insurers don't bear the cost. For their self-funded clients, like Southwest, they merely process the claims. For their traditionally insured clients, they can recover any losses by increasing deductibles and premiums and decreasing coverage.
Williams appears to have duped more than insurers. His twin brother, Dan Williams, recently retired as the assistant special agent in charge of the Dallas field office for criminal investigation for the Internal Revenue Service. He spent 27 years ferreting out fraud, and he gets the irony. "You're not the first person to point that out," he said.
Dan Williams said his brother's sudden riches from the training business piqued his investigative instincts, but he "trusted" his brother when "he told me he was authorized to bill insurance companies."
In his letter to ProPublica, Williams did not address the issues in the case or even acknowledge that any of his activities were wrong. Instead, he blamed his former wife.
"It grieves me that the consequences of a bitter and hurtful divorce have resulted in the ending of this unprecedented and beneficial opportunity to help many people," he wrote.
Lankford and Pratte are proud of their part in ending his scheme, if still baffled that they had to play such a central role in uncovering it.
If it hadn't been for the iPad messages, "I have to believe he would still be billing insurance companies from a Caribbean island," Pratte said.
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Methodist Le Bonheur Healthcare promised a policy review after an investigation by MLK50 and ProPublica found it had sued 8,300 patients — including its own employees — over medical debt. Its CEO has not responded to our questions.
This article was first published on Monday, July 1, 2019 in ProPublica.
As criticism mounts about the aggressive debt collection practices of Methodist Le Bonheur Healthcare in Memphis, Tennessee, the nonprofit hospital system's chief executive officer promised to reevaluate its financial assistance policies in the coming weeks.
"Over the next 30 days we will be reviewing our policies and procedures to ensure we are doing everything possible to provide every Memphian with the care and assistance they need," said Dr. Michael Ugwueke, Methodist's CEO and president, in a guest column published online Sunday in The Commercial Appeal.
An investigation published last week by MLK50 and ProPublica found that Methodist uses the courts as a hammer against low-wage patients who can't afford their hospital bills. From 2014 through 2018, the hospital system affiliated with the United Methodist Church filed more than 8,300 lawsuits, according to an MLK50-ProPublica analysis of Shelby County General Sessions Courtrecords. That's more than all but one creditor during that five-year period.
One story chronicled the struggle of Carrie Barrett, who makes $9.05 an hour at Kroger, to pay her 2007 hospital bill for $12,019. The bill has ballooned to more than $33,000 due to interest and attorney's fees. Another detailed how Methodist sues its own employees, some of whom make less than $13 an hour, for unpaid bills related to care delivered at its hospitals. Its health plan doesn't allow workers to seek care at hospitals with more generous financial assistance policies.
Ugwueke, meanwhile, earned $1.6 million in total compensation in 2017, the most recent year for which such data is available. That same year, Gary Shorb, the hospital's CEO from 2001 to 2016, earned more than $1.2 million for serving as Ugwueke's adviser. In 2018, the hospital brought in $86 million more than it spent, according to an end-of-year revenue bond disclosure statement.
Shelby County Commissioner Tami Sawyer and State Rep. G.A. Hardaway, both Democrats, promised to try to persuade Methodist officials to offer more assistance to patients, including forgiving debts outright.
"I was sad and very disappointed because for me, it automatically called to mind what we already know, which is that poor people in Memphis are being preyed upon," said Sawyer, who is running for Memphis mayor.
"I can't make Methodist change its policies, but what I can do is work with the courts to see what we can do about getting advocates for people who don't understand the process."
Hardaway said he wondered if nonprofit hospitals should be asked to provide more specifics to the state about their charity and collection practices.
"Do they need to make periodic reports … that tell us not just what the charity care is, but that have more detailed analysis on how many folks they're suing?"
Methodist has repeatedly refused to make its executives available for interviews and did not respond to a request for this story. In Ugwueke's column, he did not disclose any details of the 30-day review.
Instead, Methodist has released statements defending itself, noting how it is the only health care system that has hospitals in all four quadrants of Shelby County and that it provides more than $226 million in community benefit. It has not addressed why its financial assistance policy is inferior to its peers or why it garnishes wages in a higher percentage of cases than other hospitals.
Methodist's aggressive collection practices stand out in a city where nearly 1 in 4 residents live below the poverty line. And its financial assistance policy, unlike many of its peers around the country, all but ignores patients with any form of health insurance, no matter their out-of-pocket costs.
Methodist is not the only hospital whose business practices have drawn such scrutiny. Last week, a study published in the Journal of the American Medical Association and related media reports exposed similar tactics at Mary Washington Healthcare in Virginia. Two days later, the hospital announcedthat it was halting the practice of suing patients.
"We have decided it is in our community's best interest to suspend the practice of pursuing legal action for unpaid bills," the hospital said on its website.
Active Methodists and other Christians lamented the actions of the Memphis hospital.
"I'm just heartbroken for these people. I don't think they will ever see light at the end of the tunnel unless something drastic happens, like their debt is forgiven," said Phyllis Gay, a lifelong Methodist and member of St. Luke's Methodist Church.
Wesley Sanders used to be a Methodist minister in Georgia and now works for a nonprofit health care organization in Dalton, Georgia. He worries that Methodist's actions are a betrayal of the denomination's founder, John Wesley.
"Wesley thought the Church of England had become a church of the ruling class and there wasn't a place for the poor in the church," Sanders said. "Health care for the poor has been, from the earliest days of Methodism, something that was important to him."
In his guest column, Ugwueke wrote that the Methodist system had more than 857,000 patient encounters last year, more than 87,000 of which were with uninsured patients.
"Of the hundreds of thousands of patients we saw last year, we only went to court to collect debt from uninsured patients for less than one tenth of one percent of all the uninsured patients we saw," he said.
Peter Gathje, co-director of Manna House, a hospitality ministry for people experiencing homelessness, said the MLK50-ProPublica reports clashed with his experience.
He recalled a woman who stayed in intensive care for more than a month. "Her quality of care was just superior and I know she wasn't billed. She didn't have insurance and she was homeless."
But he took objection to Ugwueke's description of the situation.
"They're trying to say this is a minuscule amount of cases but if you're the person being affected, it's not minuscule," Gathje said. "And if it is a minuscule amount of cases, that seems to make the argument that you could come up with a policy that isn't so punishing of people," he said.
Shelby County Commissioner Reginald Milton said he had talked to Ugwueke, who told him that the system is doing everything it can for patients who are uninsured.
A nonprofit hospital has "to balance itself between its humanitarian purposes and its reality as a business, and that line can easily be crossed one way or another," said Milton, chair of the commission's hospitals and health committee.
"I think Methodist has been an outstanding ally and has been a very good neighbor to the community," he said.
"I do appreciate the fact that when an institution bears a cross on the outside of its building, and garners tax exemption, there is a higher calling and responsibility to look at finding every possible way to care for those in need."
In a note to faculty and staff, Dr. Steve Schwab, chancellor of the University of Tennessee Health Science Center, which is affiliated with Methodist, said it "is committed to the health and well-being of all citizens of Tennessee regardless of their financial status. … UTHSC believes it is essential that we and our core teaching hospitals review our billing and collection practices frequently to make certain we maintain fairness for all who seek our health care services."
Wendi C. Thomas is the editor of MLK50: Justice Through Journalism. Email her at wendicthomas@mlk50.com and follow her on Twitter at* *@wendicthomas.