Comprehensive Pain Specialists—a Tennessee-based company with clinics in 12 states—will close many, if not all, its facilities. The unannounced move comes after its CEO, John Davis, was indicted for Medicare fraud in April, accused of receiving $770,000 in bribes from another healthcare executive.
According to the Tennessean, all 21 clinics in Tennessee will close. Many other sites across the Southeast U.S. confirmed closure, forwarded calls to voicemail or declined to comment.
Federal prosecutors alleged Davis took money and referred patients to Brenda Montgomery, CEO of CCC Medical. Davis also allegedly hid the bribes by selling Montgomery a sham company.
“Our Medicare program is designed to help those who are most vulnerable and in need of medical services and equipment,” said John Cronan, acting assistant attorney general, in a news release announcing the charges. “Stealing funds from our health care system places the vulnerable at greater risk and diverts public funds into the pockets of the greedy individuals who exploit those with the greatest need.