El Paso hospital executive and owner accused of submitting $16 million in false insurance claims
El Paso, Texas – Two men are facing federal charges after allegedly carrying out a multimillion-dollar fraud scheme involving pass-through healthcare billing in El Paso. Both men voluntarily surrendered to the FBI last week and have since been released on bond.
Allegations of Fraudulent Billing
According to court documents, Jose Huerta, 58, who served as the Chief Executive Officer of two Long-Term Acute Care hospitals in El Paso, and Israel Navarro, 47, who owned one of the hospitals and was financially tied to the other, orchestrated the scheme together.
An indictment filed on June 25 alleges that the pair conspired with others to illegally submit false insurance claims to Blue Cross Blue Shield. These claims falsely stated that urine drug tests (UDTs) had been conducted on patients within their hospitals and sent to a Dallas-area lab. In reality, none of the patients existed, and no such testing was performed.
Over a span of six months, Huerta and Navarro allegedly submitted $16 million in false claims, which resulted in an actual loss of more than $12 million to Blue Cross Blue Shield.
FBI Surrender and Court Appearances
Navarro, who has residences in both Puerto Rico and the Dallas area, surrendered to the FBI in El Paso on July 22. He made his initial appearance in federal court the same day and was released on a $150,000 bond.
Huerta surrendered the following day, on July 23, and appeared before a federal magistrate on July 24. He was released on a $50,000 bond.
Both men are charged with:
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One count of conspiracy to commit wire fraud
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One count of wire fraud
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One count of conspiracy to commit mail fraud
If convicted, Huerta and Navarro each face up to 20 years in federal prison and a $250,000 fine per count.
This case highlights the seriousness of fraudulent healthcare billing and the significant financial losses it can cause. Federal prosecutors are expected to present further evidence as the case moves forward.
