U.S. Attorney's Office
Northern District of Texas
(214) 659-8600
September 29, 2015

San Angelo Psychiatrist Admits Committing Health Care Fraud

AMARILLO, TX—A licensed psychiatrist from San Angelo, Texas, Robert Hadley Gross, 58, pleaded guilty last week to one count of health care fraud stemming from a scheme he ran to defraud Medicare and Medicaid by submitting claims for services not rendered in the manner billed, including submitting claims for services allegedly rendered after patients’ deaths. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.

Gross faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. In addition, according to the plea agreement filed in the case, he agrees to pay $1,832,869 in restitution to the U.S., representing all overpayments made to Gross from health care providers during the scheme. Gross has been in federal custody since his arrest in mid-October 2014 on related charges outlined in a federal indictment.

According to documents filed in the case, beginning in January 2009 and continuing until approximately June 20, 2014, Gross filed, and caused to be filed, claims against Medicare, Medicaid, and other health insurance carriers, for payment for services that were never rendered and services that were billed using inappropriate CPT codes.

Gross regularly submitted claims for services rendered to nursing home residents in and around San Angelo and he also regularly submitted claims for services provided to clients of mental health and mental retardation (MHMR) organizations in San Angelo, Midland, and Abilene, Texas, in addition to claims for services provided to foster care children in Brownwood, Texas.

As part of his scheme, Gross filed claims against Medicare, Medicaid, and other health insurance carriers for services for nursing home patients on dates he did not actually render services to patients. In those instances, the patients may have died or been discharged before Gross allegedly visited them in the nursing home.

The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, and Medicaid Fraud Control Unit, Office of the Texas Attorney General are investigating. Assistant U.S. Attorney Ann Cruce-Haag and Deputy Criminal Chief Assistant U.S. Attorney Denise Williams are prosecuting. Assistant U.S. Attorney Megan Fahey is handling the forfeiture.

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