Feds join whistleblower suit on Stone County Hospital bills

The federal government is joining a whistleblower lawsuit alleging that owners of a Wiggins hospital unjustly bilked more than $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. The suit claims reimbursements for those salaries to the Cains’ company, Corporate Management Inc., were unjustified.

Former Gov. Ronnie Musgrove, one of the lawyers defending the Cains, said in a statement that their expertise running hospitals, nursing homes and other facilities has improved care at a lower cost to taxpayers.

“We expect that when this matter is reviewed by the court, CMI will be fully vindicated,” Musgrove said of the Cains’ Gulfport-based company….

…Cain gave tens of thousands of dollars to Musgrove’s campaigns, and served on the state Board of Health.

News and Observer
9/19/15