A Virginia businessman was convicted of two counts of healthcare fraud involving a Medicaid billing scheme.
Richard Davis, 51, of Powhatan, ran a fraud scheme that cost Medicaid at least $218,392 owing to severe overbilling for services rendered.
Davis was the sole proprietor of Innovative Family Services LLC, a Virginia Medicaid provider. His organization provided therapeutic day therapy for mental health difficulties after school and at home. The organization required in-person performance of all services to qualify for reimbursement.
Davis encouraged staff to bill the maximum authorized service units per day for Medicaid patients between December 2015 and July 2019, according to court documents. Davis and his organization consistently billed Medicaid for five hours of TDT despite providing just two or three hours of in-person care.
If Davis receives a sentence on February 7, 2025, he could spend up to ten years in prison.