Henderson and at least 15 co-conspirators bilked Highmark out of about $7 million.

Note: $7 million bilked, fine is $250,000 and jail time.
How does this make sense?


3 named in insurance fraud
By The Valley News Dispatch
Thursday, December 6, 2007

A retired city police officer is one of three people named in a federal court documents as being charged with one count of health care fraud.
Robert Bates of Lower Burrell was named in federal court information filed Monday in U.S. District Court in Pittsburgh.
Also named in criminal information documents were Phillip Swartzlander of New Kensington and John Slimick, whose address was not released by federal authorities.
All three were named in connection with a scheme to defraud health care insurers operated by chiropractor Douglas Henderson, who operated the now-closed Burrell Chiropractic Clinic in Lower Burrell as well as Henderson Automotive Federal authorities said that Henderson falsely billed health insurers for services provided to patients and then paid the patients kickbacks.
Authorities said Henderson and at least 15 co-conspirators bilked Highmark out of about $7 million.
In the documents filed in federal court, Henderson billed Bates' health insurance company for about $154,000 for services rendered to him and his family from September 1996 to December 2002 and paid $19,500 back to Bates.
Claims submitted by Slimick, according to the authorities, totaled $156,000 during the same period and he received more than $20,000 in return from Henderson. Swartzlander's claims for services rendered amounted to about $136,000 and he was paid about $30,000 in return by Henderson.
Five other patients of Henderson were charged last week in the scheme.
Bates, Swartzlander and Slimick bring the number of alleged bogus patients to 15.
Last April, Henderson pleaded guilty to health care fraud, conspiracy and income tax evasion. He is scheduled for sentencing in March.
Former clinic employee Kendra Huddleston, formerly of New Kensington, pleaded guilty to health care fraud, conspiracy and income tax evasion.
The charge of health care fraud facing Bates, Swartzlander and Slimick carries a penalty of up to 10 years in prison and a $250,000 fine, according to court documents.