Ruby Scott, owner and operator of Delta Home Health Care LLC in Michigan, was convicted by a federal jury on charges related to healthcare fraud and illegal healthcare kickbacks connected to a scheme that caused more than $1.6 million in losses to the Medicare program.
Scott, 55, of Farmington Hills, Michigan, was found guilty in the Eastern District of Michigan on five counts of healthcare fraud, conspiracy to defraud the United States and pay illegal healthcare kickbacks, and four counts of paying illegal healthcare kickbacks. The healthcare fraud and kickback counts each carry a maximum prison sentence of 10 years, and the conspiracy count carries a maximum prison sentence of five years. Scott is scheduled for sentencing on September 24, 2026.
The case involved conduct that prosecutors alleged occurred between 2018 and 2021. During that period, Scott allegedly submitted fraudulent Medicare claims for home healthcare services using stolen patient records.
Scott established a relationship with a discharge nurse employed at a Detroit hospital. The nurse identified Medicare patients and transmitted patient medical records to Delta Home Health Care. Prosecutors alleged that Scott paid approximately $300 for each patient record that was successfully used for Medicare billing purposes.
The discharge nurse reportedly received more than $130,000 through CashApp, cash payments, PayPal, and checks in exchange for supplying the records used in the billing scheme.
The records contained confidential diagnostic information and personal information belonging to patients. Prosecutors alleged that the information was used to submit Medicare claims for home healthcare services while falsely representing that physicians had certified that the patients met Medicare eligibility requirements for home healthcare treatment.
The patients were unaware that their personal and health information was being used in connection with the claims. The physicians identified in the claims had never met the patients and did not know their information had been used in the submissions.
Medicare reportedly paid approximately $1.2 million to Delta Home Health Care in connection with the claims. The Medicare program lost approximately $1.6 million because of the scheme.
The federal jury conviction followed charges alleging healthcare fraud and operation of an illegal kickback arrangement. A Department of Justice press release accompanying the announcement of the guilty verdict stated that the Fraud Division is focused on investigating and prosecuting fraud involving federal programs. The statement also referenced the Trump administration’s Task Force to Eliminate Fraud, which the release described as a government-wide initiative chaired by Vice President J.D. Vance and intended to address fraud, waste, and abuse in federal benefit programs.
It was not mentioned whether any separate civil enforcement actions were filed against Delta Home Health Care LLC. It is uncertain if Medicare beneficiaries affected by the use of the records were notified.
There is no information provided about whether the discharge nurse had a plea agreement or was separately prosecuted.
Healthcare fraud cases involving patient records and false Medicare claims may involve HIPAA Privacy Law compliance concerns associated with safeguarding protected health information (PHI) and maintaining accurate billing documentation.
Image credits: Daniel, AdobeStock
