WED Healthcare Report: Long-term care fraudster sentenced to 28 months, ordered to pay $1.25M 

From WisPolitics.com/WisBusiness.com …

— The U.S. Attorney’s Office in the state’s Eastern District today announced the former owner of a long-term care facility has been sentenced to 28 months in federal prison for fraud. 

The office says 49-year-old Lori Butts stole about $1.25 million from a Medicaid-funded program supporting residential care services for disabled residents while operating Lordan Care Adult Family Homes. 

Between July 2019 and December 2020, Butts billed the program for work that was never provided, including for two workers that were meant to be providing “dedicated services” 24 hours a day to a single resident, according to the release. Caregivers did not provide the billed service. 

At the same time, the facilities she operated were “severely understaffed and experienced frequent police contact,” the office notes. It says staffing levels were at times insufficient to address “volatile or inappropriate” conduct by residents. 

Along with the prison sentence, U.S. District Judge J.P. Stadtmueller ordered Butts to pay the $1.25 million in restitution to the Medicaid program. In the Oct. 22 sentencing, the judge compared her healthcare fraud scheme to the “functional equivalent of grand larceny,” charging taxpayers for thousands of hours of caregiver time that wasn’t provided. 

The sentencing followed an investigation by the FBA and the IRS Criminal Investigations unit. 

In a statement on the case, First Assistant U.S. Attorney Brad Schimel said the U.S. Department of Justice is “laser focused on punishing” those who commit fraud against federal healthcare programs 

“When the defendant stole this money, she took it from every American taxpayer and diverted it from individuals who needed help,” Schimel said. 

See the release below. 

— Wisconsin’s total measles case count for this year so far has risen to 335, after health officials announced two new cases in Jackson County. 

The state Department of Health Services and the Jackson County Public Health Department yesterday confirmed the two cases are related to out-of-state travel. They’re working to identify and notify those who may have been exposed, and the announcement doesn’t list any public exposure locations. 

Confirmed cases have now been found in Chippewa, Grant, Iowa, Lafayette, Marathon, Richland, Rock and Vernon counties. 

Of the total case count, all but two have been among unvaccinated people. Seven cases have resulted in hospitalization. 

See more at the DHS measles page. 

See the release below. 

— A group called the American Forge Coalition is sending a mailer claiming U.S. Rep. Derrick Van Orden’s “position on abortion keeps getting weaker.” 

The group is registered in Delaware, and state records show it was established in May of this year. It is not registered as a political action committee. 

The group’s website says, “WE THE PEOPLE built this country. NOT politicians. NOT foreigners. We’re hammering it back into shape — one job, one neighborhood, one law at a time.” 

The website also says the group’s priorities are “American jobs first,” “secure the border” and “hands off our towns.” 

A copy of the mailer shared with WisPolitics says “Congressman Van Orden would allow the murder of the unborn into the second trimester.” 

It also says, “Tell Congressman Van Orden it’s never okay to murder unborn children” and includes the phone number for his district office in La Crosse. 

Van Orden has previously said he is “unreservedly, unabashedly and proudly pro-life.” He has also been called out by the Wisconsin Democratic Party for his “extreme position” on abortion. 

The American Forge Coalition has sent out mailers about other Republican House representatives and candidates in key House districts. The mailers have raised concern among national Republicans that the materials are an effort to manipulate potential GOP voters. 

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