Texas doctor 'horrified' patient deaths linked to his role in $60M Medicare fraud scheme

An Arlington doctor pleaded guilty Tuesday in federal court to a conspiracy charge in what government officials say was a $60 million scheme to defraud Medicare.

Dr. Charles R. Leach, 66, is one of 16 defendants in the criminal case involving Novus Health Services and Optim Health Services, collectively known as Novus. The Frisco-based company was one of the largest hospice providers in North Texas before it shut down in late 2015.

A federal indictment alleges they defrauded the government by billing for hospice care that wasn't always delivered or warranted. In some cases, patients died after receiving high doses of medication to justify the higher billings, authorities said.

Leach's attorney said the doctor knew nothing about hospice patients being overmedicated to hasten their deaths.

"Dr. Leach is very remorseful for his role," his attorney, Mick Mickelsen, said after the hearing. "He has taken responsibility and [is] fully cooperating with the government."

Sentencing is scheduled for Dec. 14.

Leach worked as a medical director for Novus from April 2014 to October 2015. He also briefly worked for Novus Home Health.

As part of his plea deal, Leach said he falsified claims to Medicare and Medicaid by claiming to have provided medical care that he had not.

He also signed blank prescription forms in bulk for controlled substances such as hydromorphone or morphine. Those drugs were then used to overmedicate patients, according to prosecutors.

The plea documents state that Leach knew Novus CEO Bradley Harris often directed medical services. But Harris, a certified public accountant, had no medical license.

Mickelsen said Leach signed the blank prescriptions "out of convenience" but had no knowledge that drugs were being used to hasten patients' deaths.

"He was horrified to find out," Mickelsen said. "He's responsible, though, for making that possible by breaking the rules when it comes to how those scripts were issued."

Leach is the fourth Novus defendant to plead guilty to conspiracy. The three others were Jessica Love, a registered nurse case manager and regional director for Novus; Melanie Murphey, who worked as Novus' director of operations; and Taryn Stuart, a Novus hospice nurse.

As part of their plea agreements, the defendants face up to 10 years in federal prison and a fine of up to $250,000 or twice any financial gain they received.

Twelve others, including Harris, are scheduled to go to trial in January.

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Texas doctor 'horrified' patient deaths linked to his role in $60M Medicare fraud scheme