Putnam County Memorial Hospital involved in billing scheme

JEFFERSON CITY, Mo. (AP) -- Missouri Auditor Nicole Galloway alleges a rural hospital under financial strain in northern Missouri has engaged in a $90 million billing scheme.

An audit released Wednesday alleges 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 says after a new CEO took office in September 2016, he hired a partner organization for lab work. The report claims 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 says the hospital got a cut of insurance payments.

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