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Virginia businessman faces up to 10 years in prison for $218K Medicaid billing scheme

Crystal Graham
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A Virginia businessman was convicted of two counts of healthcare fraud related to a Medicaid billing scheme.

Richard Davis, 51, of Powhatan, led a fraud operation that resulted in a loss to Medicaid of at least $218,392 due to excessive overbilling for services provided.

Davis was the sole owner of Innovative Family Services LLC, a Medicaid provider in Virginia. His company provided therapeutic day treatment for mental health issues after school and in homes. For reimbursement, all services were required to be in person.

From December 2015 through July 2019, court documents show that Davis directed employees to bill the maximum allowable service units per day for Medicaid recipients. Davis and his company routinely billed Medicaid for five hours of TDT when only two or three hours of actual in-person care were provided.

Davis faces up to 10 years in prison when he is sentenced on Feb. 7, 2025.

Crystal Graham

Crystal Graham

Crystal Abbe Graham is the regional editor of Augusta Free Press. A 1999 graduate of Virginia Tech, she has worked for 25 years as a reporter and editor for several Virginia publications, written a book, and garnered more than a dozen Virginia Press Association awards for writing and graphic design. She was the co-host of "Viewpoints," a weekly TV news show, and co-host of Virginia Tonight, a nightly TV news show on PBS. Her work on "Virginia Tonight" earned her a national Telly award for excellence in television.