Feds join whistleblower suit on Mississippi hospital bills

AP News
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Posted: Sep 18, 2015 7:34 PM

JACKSON, Miss. (AP) — The federal government is joining a whistleblower lawsuit alleging owners of a Mississippi hospital unjustly bilked $12 million from Medicare.

The suit, filed in 2007 by a former administrator at Stone County Hospital and unsealed Friday, alleges that Ted and Julie Cain of Ocean Springs pulled down big salaries partially reimbursed by the federal health care program for older people.

James Aldridge, who filed the lawsuit, says he rarely saw either Cain performing management duties, though their salaries were included in the cost of running the hospital in federal reports. Aldridge would get part of any money recovered by federal authorities.

Cain was a big campaign contributor to former Gov. Ronnie Musgrove, one of the lawyers defending him. Musgrove says he expects Cain and his company will be "fully vindicated."