Companies managing Decatur Co. General used ‘questionable activities’
DECATUR COUNTY, Tenn. — The Tennessee Comptroller’s Office confirmed an investigation into two companies that managed Decatur County General Hospital used “questionable activities.”
A news release says the hospital was managed by Impeli Health, Inc. from March 1, 2018 through Sept. 24, 2018.
The release says Impeli’s chief executive officer directed a hospital employee to transfer $307,000 from the University of Tennessee to the hospital’s account. The money had originally been slated for a UT facility in Parsons’ rent, but the banking information was mistakenly shared with the hospital, according to the release.
The funds were repaid after UT demanded repayment, according to the release.
Investigators are also questioning $130,488 in payments the hospital made to Allergy Nexus, LLC and Dunwoody Labs, LLC for laboratory expenses, the release says. According to the release, hospital lab employees could not confirm that specimens were ever processed at the hospital or referred to an outside lab for processing.
Progressive Hospital Group, Inc. managed the hospital from January 21, 2019 through February 29, 2020.
The release says Progressive and the company’s owner have interests in Dunwoody Labs and Progressive Medical Center in Georgia.
The release says Decatur County General Hospital used Dunwoody Labs for testing after Progressive took over, and the two groups had arranged that Dunwoody Labs would take over submission of health insurance claims using Decatur County General’s billing identification.
The release says because the hospital is located in rural Tennessee, their insurance reimbursement is higher than what would have been paid to Dunwoody Labs.
Progressive also authorized more than $47,000 in hospital funds to be paid on behalf of a consultant, but investigators could not find any justification for the work, the release says.
According to the release, Progressive used another $8,000 of hospital funds to pay bonuses to the former CEO and chief operations officer.
The release says under the company’s management, the hospital’s debt increased from $1,01,790 to about $2,869,616.
The findings have been sent to the 24th District Attorney General’s office and the U.S. Attorney’s office.