WHITNEY (January 16, 2014) The Lake Whitney Medical Center, whose 30 remaining employees have been working for free for a month, won’t make its payroll again Friday and a source says it’s likely that means the doors of the hospital will close.
The hospital has struggled ever since its owner, Dr. Tariq Mahmood, was indicted last year on charges of Medicare fraud.
The Lake Whitney Hospital Authority board took over responsibility for medical center operations, but with the case against Mahmood still pending, has not been able to collect Medicare and Medicaid reimbursements.
The board’s attorney, Gregg Hill of Hillsboro, says he has been working hard to distance the hospital from Mahmood so the hospital could remain open.
The board’s lawsuit against Mahmood is scheduled to go to court at the end of March.
Meanwhile the Dallas Morning News reported Thursday that Mahmood is now also facing seven counts of aggravated identity theft involving the unlawful use of names of Medicare beneficiaries, according to documents filed in U.S. District Court in Tyler.
Mahmood has pleaded not guilty to all charges.