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.