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Hendersonville Mental Health Provider Caught in Federal Medicare Fraud Sting

The operator of a mental health treatment facility in Henderson County is accused of Medicare and Medicaid fraud and is considered a flight risk.

By Rose Hoban

One of dozens of health care facility owners caught in a federal Department of Justice sting revealed Wednesday was allegedly defrauding patients in the western part of North Carolina.

HealthCare Solutions Network Logo

HealthCare Solutions Network Logo

Armando ‘Manny’ Gonzales owned Health Care Solutions Network, a licensed mental health facility based in Hendersonville, and is named in an indictment filed by the US Department of Justice as defrauding Medicare and Medicaid in Florida and North Carolina. (you can also read the court documents below)

No one was answering the phone at Health Care Solutions Network’s number, and the organization’s website had been taken down as of Thursday morning.

In court papers filed in the US District Court office in Asheville Wednesday, Gonzales is accused by the US Department of Justice of bilking Medicare and Medicaid out of a total of $63 million over the course of six and a half years.

According to the US DOJ Gonzales fled South Florida in 2008 once he realized he was being investigated for Medicare fraud, came to North Carolina where he established the Hendersonville facility and was planning to open an operation in Johnson City, Tennessee.

The papers accuse Gonzales of paying kickbacks to owners of assisted living facilities and nursing homes in exchange for referring Medicare beneficiaries for treatment at Health Care Solutions Network.

Penny Summey, a program administrator at the Department of Social Services in Henderson County, said the facility closed down several months ago, and clients are being served in other programs.

The facility was established as a not for profit in North Carolina and is still licensed as a mental health day treatment provider as of April, 2012.

“Up until they closed their doors, we thought they had provided very good service to the clients. The mental health clients seemed to make advances in many ways while they were being served there,” Summey said.

But the word on the street was that things at Health Care Solutions was not so rosy.
“We have a mental health roundtable where professionals meet monthly,” said Susan Logan, psychiatric case manager at the Free Clinics of Henderson County. “When the facility first opened, we had one or two people from their public relations department come and give out slick brochures.”

Google map view of Gonzales' property on Grand Oaks Drive in Hendersonville

Google map view of Gonzales' property on Grand Oaks Drive in Hendersonville

Logan said one positive was that someone from the organization would go out and pick up clients in a van and bring them back to the facility – a plus in a place where public transit is scarce and clients are scattered in small towns and down backroads. But local professionals quickly began to express doubts about the facility and its management.

“One of the doctors I knew who I respect and who said he’d work there in the beginning quit quickly,” Logan said. “He said it was a bad organization.”

According to the court documents, the facility was supposed to be offering an intensive daytime-only mental health service called a Partial Hospitalization Program, used for people with severe mental health problems, such as schizophrenia or bipolar disease. People with dementia or other memory problems are not eligible to receive the service.

The court papers allege that Gonzales altered patients’ medical records to indicate they were eligible for the treatment. Patients with Alzheimers disease were sometimes bussed from their residences several counties away, traveling as much as an hour, to the facility on Old Naples Rd. in Hendersonville where they were shown old movies, or did not receive any treatment at all.

A spokesman for the state Division of Health Service Regulation said the Division inspected Health Care Solutions Network last June and found no deficiencies. Division records show no administrative actions against the facility.

Court papers said Gonzales, a Cuban national, is considered to be a flight risk and the DOJ requested pre-trial detention. Among the property the to be seized from Gonzales were 17 vehicles, including 2007 and 2009 Cadillacs and a 2009 BMW, along with mansion on Grand Oaks Drive in Hendersonville.

Gonzales was convicted of cocaine trafficking in 1984, and sentenced to five and a half years in prison on that offense. His current charges carry a potential maximum sentence of 145 years.

Read the Detention Memo below:

US DOJ: Miami Us v Gonzalez Et Al Detention Memo (Text)
Read the Indictment below:

Miami Us v Gonzalez Et Al (Text)

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