MediCenter indicted on 115 felony counts

MediCenter offices in Kenai were searched in July of 2019

The managers of MediCenter, which formerly operated a series of clinics on the Kenai Peninsula, were indicted Wednesday on 115 felony counts for fraudulent billing to Alaska Medicaid and to Aetna and Premera Insurance Companies.

A press release from the State Department of Law describes five co-defendants, Dr. Ray Lynn Carlson, Scott L. Carlson, Joseph Hurley, Charise Carlson, and Dr. Carlson’s corporation. Each of the co-defendants was indicted on 23 felony counts.

The charges describe “numerous” class B and C felonies, the release says. They include “scheme to defraud, medical assistance fraud, theft and fraudulent insurance acts.”

Each of those felony charges can individually result in years spent in custody and fines of up to $100,000, the release says.

The indictment comes more than four years after MediCenter offices in Kenai were searched in July of 2019. According to Clarion reporting at the time, a “joint state and federal investigative team” executed search warrants issued by Anchorage District Court Judge David Wallace as well as a judge in Washington. Then-Chief Assistant Attorney General Jack McKenna said the focus of the investigation was “questioned billing practices” by MediCenter.

“This indictment is the result of a multi-year, multi-state and multi-agency investigation in the states of Alaska and Washington,” the Department of Law’s release reads.

Described in the release are collaborative efforts by the Alaska Medicaid Fraud Control Unit and a variety of federal and state agencies, including the Kenai Police Department and Alaska State Troopers.

Days after the search in July 2019, MediCenter wrote on Facebook that they were “fully cooperating with the investigation to ensure that the care we deliver meets or exceeds all medical, ethical and financial regulations.” MediCenter ceased operations on the Kenai Peninsula on Oct. 31, 2019.

Reach reporter Jake Dye at jacob.dye@peninsulaclarion.com.

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