A prominent Arkansas psychiatrist is under federal investigation for alleged an Medicaid fraud scheme and false imprisonment, NBC News reported July 23.
Brian Hyatt, MD, formerly worked at Springdale, Ark.-based Northwest Medical Center's mental health unit and on the state medical board. At least 26 former patients have sued him, alleging they were held against their will in his unit for days or weeks after coming in for mental health aid. In addition, the state attorney general accused Dr. Hyatt of running an insurance scam, billing Medicaid for treating patients he rarely saw and using the highest severity codes on each patient to earn the most money.
From January 2019 to June 2022, Medicaid paid more than $800,000 to Dr. Hyatt's facility, and 99.95 percent of his claims came in the most expensive code, according to an affidavit.
In May 2022, he was terminated from the hospital after it agreed to pay $1.1 million in settlements related to insufficient justification to hospitalize 246 patients in his unit. In May 2023, Dr. Hyatt resigned from the Arkansas State Medical Board after DEA agents searched his private practice.
"I am not resigning because of any wrongdoing on my part but so that the board may continue its important work without delay or distraction," he wrote in a letter shared with NBC News. "I will continue to defend myself in the proper forum against the false allegations being made against me."
Dr. Hyatt has not been charged with a crime, and his legal team released the following statement: "Dr. Hyatt continues to maintain his innocence and denies the allegations made against him. Despite his career as an outstanding clinician, Dr. Hyatt has become the target of a vicious, orchestrated attack on his character and service. He looks forward to defending himself in court."