Hollidaysburg couple pleads guilty in healthcare fraud scheme

BLAIR COUNTY, Pa (WJAC) — Federal authorities say a Hollidaysburg couple has reportedly pleaded guilty in an alleged healthcare fraud scheme.

Officials say John and Paula Johnson, both age 62, pleaded guilty to one count each of conspiracy to defraud the United States. Authorities say John Johnson also pleaded guilty to an additional charge of conspiracy to commit healthcare fraud.

Authorities say John Johnson reportedly conspired with multiple individuals, including a man by the name of Rodney Yentzer, to defraud health insurance companies by illegally billing them for urine drug tests.

Investigators say Johnson and Yentzer reportedly went into business together in 2016 and established multiple "pain clinics" including "Lighthouse Medical" and "Pain Medicine of York (PMY)."

Authorities say Lighthouse Medical reportedly operated a drug testing laboratory, where the urine tests were conducted.

Investigators say the pair later "sold" the lab services to a "Critical Access Hospital" near the Florida and Alabama state line.

Officials say as part of their alleged agreement, Johnson and Yentzer would then receive a $900 kickback for every urine drug test that was done by the "hospital."

Authorities say the owners of the hospital billed insurance companies roughly $1.4 billion for various medical tests, which were deemed not necessary.

Officials say Lighthouse Medical received a "kickback" of over $2.3 million, in a four-month period, for these services.

Investigators say John Johnson was charged in a similar scheme in the state of Florida and later instructed Yentzer to add his wife to PMY's payroll, despite the fact that she had reportedly not practiced medicine in years.

Officials say while he was previously incarcerated, John Johnson also allegedly instructed Yentzer to continue billing insurance companies for the tests.

Investigators say from mid-2017 to late 2019, PMY reportedly billed insurance over $10 million for the tests and received over $4 million in payouts.

Authorities also noted that instead of paying the restitution for Johnson's charges in Florida, Yentzer reportedly used the money to pay for various items for the Johnsons, including a new car and a college savings account for their son.

Officials add that PMY was later shut down, in 2019.

Authorities say Yentzer has since pleaded guilty to his role in the scheme and is awaiting sentencing.

Federal prosecutors say the Johnsons face up to five years in prison, as well as a possible fine, and John Johnson faces an additional 10 years in prison on the healthcare fraud charge.

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