After losing Medicare and Medicaid status and dealing with other legal issues, Shelby Regional Medical Center in Center, Texas, has shut down, according to a Light and Champion report.
Tariq Mahmood, MD, owner of Shelby Medical Holdings, the for-profit group that owns Shelby Regional, decided to immediately close the facility, though some staff said they hope to keep the emergency department open until tomorrow. According to The Light and Champion, 89 employees will lose their jobs.
The 54-bed Shelby Regional has been in turmoil this year. HHS terminated its Medicare and Medicaid status yesterday, and Dr. Mahmood has been embroiled in fraud allegations. In April, federal authorities filed criminal charges against Dr. Mahmood, saying he conspired to defraud Medicare and Medicaid by instructing employees to alter diagnostic codes at Renaissance Hospital Terrell (Texas), another hospital he owned and has since closed. He was arrested but later released on bond, and Dr. Mahmood's attorney said he denies all charges.
Dallas-based Tenet Healthcare Corp. used to own Shelby Regional, but in 2007, it sold the hospital to Dr. Mahmood and Shelby Medical Holdings for $2 million.
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