New Mexico Attorney General Sues Health Care Staffing Agency over Alleged $4.9 Million Fraud

Strategic Insights -

New Mexico's attorney general, Raúl Torrez, has filed a lawsuit against Colorado-based Jogan Health, LLC, and its CEO, Dan Dietrich, alleging that the healthcare staffing agency defrauded the state out of millions of dollars during the coronavirus pandemic. The lawsuit claims that Jogan Health engaged in "haphazard, unsubstantiated, and frequently predatory billing practices," resulting in the state losing over $4.9 million. The lawsuit was filed in New Mexico District Court on October 22.

Key Takeaways:

  • The lawsuit alleges that Jogan Health billed for services never provided and sought more money even after receiving more than the contract outlined.
  • The state accuses the company of "capitalizing on the deaths and fear caused by the COVID-19 health crisis" by fleecing the coffers of not only New Mexico but also other states desperate for healthcare workers.
  • Jogan Health signed a contract with the New Mexico Department of Health in October 2021 to provide temporary staffing at facilities such as hospitals and nursing homes.
  • The state is seeking an award of three times the actual damages, or $14.8 million, plus attorney fees.
  • The lawsuit describes the company's actions as "blatant greed" and characterizes its efforts as "predatory billing practices."
  • The state has accused Jogan Health of engaging in similar behavior with other states, including Oregon, which sued the company last year alleging overpayment and non-payment.
  • Dan Dietrich, the CEO of Jogan Health, has not yet been listed as an attorney in public court records and was unavailable for comment.

Statistics:

  • $4.9 million: The amount of money the state of New Mexico allegedly lost due to Jogan Health's "haphazard, unsubstantiated, and frequently predatory billing practices."
  • $14.8 million: The amount of money the state is seeking as an award, three times the actual damages.
  • October 2021: The month in which Jogan Health signed a contract with the New Mexico Department of Health.
  • 3x: The multiplier the state is seeking for attorney fees.

Sources:

  • New Mexico Attorney General's Office
  • New Mexico Department of Health
  • [Source 1: New Mexico New Mexican]

https://www.santafeallenewmexican.com/news/ag-declares-war-on-jogan-health-fraday-friday-franchise/article_ce89a558-47f5-52b7-bf97-b63b136382ab.$html