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A Charleston doctor William J. Casto, Jr. is under scrutiny by federal investigators,
associated with charges that Jackson General Hospital in Ripley falsely billed
$765,000. A settlement was apparently reached between Jackson General and U.S.
Attorney Kasey Warner.
The secret lawsuit was filed last December under a whistle blower law which helps
the government recover defrauded health care funds. The Charleston Gazette reports
the whistle blower was Ripley pediatrician Dr. Hamid Moradi, who reportedly stated
the hospital "submitted false claims for Medicare and Medicaid services" within the
past three years.
The hospital was also accused of "slipping kickbacks" to cooperating doctors
"disguised as physician salary guarantees for patient referrals." In what may be the
first whistle blower suit in West Virginia, Dr. Moradi was awarded $153,000 for whistle
blowing. Jackson General was required to pay Dr. Moradi's legal fees of $27,103.
The hospital must quickly make a $200,000 re-payment, agree to a payment plan and
sign a "Corporate Integrity Agreement."
Meanwhile, Jackson Family Practice has advised 6,500 patients attached to Dr. Cindy
Reese, she will no longer see patients after 16 years. Dr. Reese stated one of her
primary reasons for moving to North Carolina being, the state's malpractice problems.
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