Former New Mexico Hospital Exec Allegedly Embezzled $3M

An insurer has filed suit against a former executive at Christus St. Vincent Regional Medical Center in Santa Fe, N.M., alleging he bilked more than $3 million from the hospital, according to an Associated Press report published in the Houston Chronicle.

Great American Insurance claims Richard Crabtree allegedly engaged in a "pervasive scheme" with other defendants by billing and collecting at least $3.2 million for hospital services that were not provided or were highly inflated. He then allegedly funneled those funds through corporations he owned in New Mexico, Arizona and Texas that were under the control of a woman with whom he had a personal relationship, according to the report.

Hospital CEO Alex Valdez said Mr. Crabtree was fired in 2008 due to fraud allegations Mr. Valdez learned of after an "anonymous packet" was mailed to him, according to the report. He said he would like to see Mr. Crabtree investigated on criminal charges.  

Related Articles on Hospital Executives and Fraud:

Former CEO of New York's MediSys Found Guilty of Conspiracy, Fraud
Former General Counsel of Children's Hospital of Philadelphia Pleads Guilty to Embezzlement
Ohio Valley Health System Sues Former CEO for Hiding Operating Losses From Board



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