El Paso Hospital CEOs Indicted in $16M Healthcare Fraud Scheme

Two El Paso hospital executives, Jose Huerta and Israel Navarro, have been indicted on charges of healthcare fraud involving a $16 million scheme where they allegedly submitted false insurance claims for urine drug tests on non-existent patients. Huerta, CEO of two Long-Term Acute Care hospitals, and Navarro, owner of one hospital and financially connected to the other, are accused of conspiring to defraud Blue Cross Blue Shield by falsifying claims that urine drug tests were performed and samples sent to a Dallas lab, which prosecutors say never happened. The alleged fraud resulted in a loss exceeding $12 million for the insurer over a six-month period. Both men voluntarily surrendered to the FBI and were released on bonds—Navarro on $150,000 and Huerta on $50,000—and face up to 20 years in prison and $250,000 fines per count if convicted. The investigation is led by the FBI and Texas Department of Insurance, with Assistant U.S. Attorney Debra Kanof prosecuting the case. This case highlights ongoing challenges in combating healthcare fraud that significantly strains the healthcare system.