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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Iowa

FOR IMMEDIATE RELEASE
Thursday, October 20, 2016

Former Central Iowa Psychiatrist Pleads Guilty to Health Care Fraud

DES MOINES, IA – – On October 19, 2016, Richard Lee Hauser, M.D., 66, of North Liberty, Iowa, appeared before the Honorable Stephanie M. Rose, and pleaded guilty to two counts of health care fraud, announced United States Attorney Kevin E. VanderSchel.

According to the plea agreement, from about October 2008 until about August 2013, Dr. Hauser, a psychiatrist licensed to practice in Iowa, oversaw and personally provided services at a clinic in Grinnell, Iowa. The clinic operated under the name Prevention Systems, Inc. and did business as The Hauser Clinic. Beginning by at least November 8, 2011, and continuing to at least on or about December 31, 2012, Dr. Hauser devised, participated in and intended to devise a scheme to obtain, by means of materially false and fraudulent representations, money and property owned by and under the custody and control of the State of Iowa Medicaid program and Wellmark Blue Cross and Blue Shield of Iowa, in connection with the delivery of and payment for health care benefits and services. As part of this scheme, Dr. Hauser would "up code"—that is, submit and cause to be submitted claims to both Iowa Medicaid and Wellmark misrepresenting the service Hauser provided to certain patients by "coding" for a more expensive service, which was not, in fact, performed, for the purpose of increasing the amount of reimbursement The Hauser Clinic would receive from Iowa Medicaid and Wellmark.

Dr. Hauser is scheduled to be sentenced before The Honorable Stephanie M. Rose, United States District Court Judge, on February 16, 2017, at 10:00 a.m., at the Federal Courthouse in Des Moines. Health care fraud is a felony offense that is punishable by a maximum of ten years of imprisonment and a maximum $250,000 fine.

This matter was investigated by the State of Iowa Medicaid Fraud Control Unit and the United States Postal Inspection Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

Topic(s): 
Health Care Fraud
Component(s): 
Updated October 20, 2016