Arkansas Psychiatrist Brian Hyatt Arrested on Felony Medicaid Fraud Charges

October 11, 2023

ROGERS, Ark — A prominent Rogers psychiatrist who held an executive position on the Arkansas State Medical Board (ASMB) was arrested on two counts of large-scale Medicaid fraud during his tenure as the director of Northwest Medical's Behavioral Health unit in Springdale, officials confirmed on Tuesday.

On Monday, Oct. 9, the arrest warrant for Dr. Brian Hyatt was formally issued— over eight months after the Office of the Medicaid Inspector General (OMIG) sent a letter to Hyatt citing credible allegations of Medicaid fraud, and suspending his Medicaid services. Although documents say Hyatt's contract with Northwest Medical Center was abruptly terminated in May 2022, he still held a private practice in Rogers, Pinnacle Premier Psychiatry, where he still remains a part of the team, according to their website.

A probable cause affidavit says that a confidential informant who worked with Hyatt at the behavioral unit contacted the Medicaid Fraud Control Unit (MFCU) with the Arkansas Attorney General's Office in April 2022. An investigator with the unit said the CI reported that "there was significant growth in the unit and likewise in the claims and billings submitted to Medicaid, Medicare, and private insurance" since Hyatt started as the unit's director.

The CI said Hyatt was only ever on their floor for a few minutes each day, and that Hyatt had no contact with patients. There were also reports of Hyatt directing staff to mark out his name on the armbands of patients. "The CI said Dr. Hyatt did not want the patients to know his name," the MFCU's investigator said.

The investigator said Dr. Hyatt's own records claimed he had daily face-to-face evaluations and management with all of his patients, but while going over months of surveillance video of the behavioral unit, the investigator said they did not see Dr. Hyatt have contact with a patient at any point.

The affidavit was filed to the Pulaski County District Court, where the alleged fraudulent claims were sent on Jan. 14, 2023. The investigation also alleges that Dr. Hyatt billed more Medicaid recipients using the highest code than any other doctor had billed for all of their patients in the state.

Out of the three codes to bill Medicaid, code 99233 is typically only billed by providers for the most unstable patients with significant complications, which also called for more money from the government to treat them.

The investigation notes that between Jan. 1, 2019, and May 2022, 99.9% of Dr. Hyatt's claims for Medicaid were billed under code 99233. For reference, the document states that during that same timeframe, only about 21% of Medicaid billing was for the highest code on average nationally.

Since Hyatt's contract was terminated by Northwest Medical Center in May 2022, dozens of former patients at the behavioral unit have filed lawsuits against him, all with accusations stating Hyatt (and his staff) did not allow them to leave, despite asking to.

In one case, the suit alleges that a judge had to issue a court order to require a woman's release from the behavioral unit and Hyatt's care. The plaintiff in that lawsuit claimed that when she arrived, Dr. Hyatt's name was marked out with a sharpie on her wristband.

According to the state medical board, Dr. Hyatt still has his medical license.

Source: “Prominent Arkansas psychiatrist arrested for large-scale Medicaid fraud,” KFSM CBS 5 News, Oct. 10, 2023, URL: https://www.5newsonline.com/article/news/crime/prominent-arkansas-psychiatrist-arrested-medicaid-fraud/527-c3ad466a-b47e-4935-ac66-12659e69bee2