Fraud Case Highlights Closure of Rural Texas Hospitals

DALLAS (AP/Staff) – The sentencing in Tyler federal court this week of hospital administrator Dr. Tariq Mahmood concludes a legal saga that included the closure of four rural Texas hospitals he operated, including Cozby-Germany Hospital in Grand Saline. But those closings also accelerated the number of hospitals shuttering in rural parts of the state and increased a void for many seeking medical care. Federal prosecutors say the damage caused by Mahmood’s Medicaid and Medicare fraud contributed to the collapse of the hospitals. He was sentenced to 11 years in prison. The Texas Organization of Rural and Community Hospitals says 10 rural hospitals have closed in the last two years. David Pearson, the organization’s CEO, says regulations and the need for new technology result in high costs for hospitals. At the same time, state and federal reimbursements to them are being cut.