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Audit: Rural Missouri hospital involved in $90 million billing scheme

An audit released Wednesday alleged Putnam County Memorial Hospital acted as a shell organization to funnel insurance payments to another lab company. (MGN Online)

Missouri Auditor Nicole Galloway alleged a rural hospital under financial strain in northern Missouri has engaged in a $90 million billing scheme.

An audit released Wednesday alleged Putnam County Memorial Hospital acted as a shell organization to funnel insurance payments to another lab company.

A request for comment from the hospital wasn't immediately returned Wednesday.

Galloway said after a new CEO took office in September 2016, he hired a partner organization for lab work. The report claimed the hospital billed insurance companies for work done by out-of-state lab workers, then funneled most of the roughly $90 million in payments to the lab. Galloway's office said the hospital got a cut of insurance payments.

The hospital told auditors in July that it needed more time to review billing allegations to respond.

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