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According to Medicare rules a practice is suppose to disclose the identity of any person who has a 5% or greater financial interest in the practice. Since Hollern receives 40% of the profit from all of the practices he sets up (18 states so far) Hollern definitely has a 5% or greater interest in each practice. However, I do not think Hollern is identified in any of these practices as such. This means Hollern is collecting Medicare and Medicaid funds in multiple states where he does not hold a chiropractic license. He could claim that he is just being paid back but, the practices are being run by Hollern rules and the doctors buying the practices are not allowed to purchase anything for the practices over $300.00 without Hollern’s permission. The same goes for changing any office or procedural policies. The practices are set up with the intension to bill Medicare, Medicaid and other third party payers. Hollern is the owner of these practices until the other doctor pays him off. He has the power to remove a doctor from the practice if the doctor is not performing to Hollern’s standards.

Some of the states Hollern has offices in (Illinois for example) have laws that state that the owner of a chiropractic practice in that state has to be a chiropractor licensed in that state. To my knowledge Hollern only holds Kentucky and Indiana licenses. His practices may then be violating laws in other states regarding chiropractic ownership.

Witnesses: Finnell and Swartley for billing practices see Complaint # 3, Dr. Jason Goodman and Dr. Joe Rogers

Complaint # 8
Against Hollern and Stapleton
KRS 312.150
(2g) Accepting for services rendered assigned payments from any third-party payer as payment in full, in the payment by the patient of any required deductible or co-payment applicable in the patient’s health benefit plan, or collecting a fee or charge the licensee submits to a third-party payer for that service or treatment. However, in instances where the intent is not to collect excessive remuneration from a third-party payer but to provide services at a reduced rate to a patient unable to afford the deductible or co-payment, the services may be performed for a lesser charge or fee. The third-party payer shall be informed by the licensee of the reduced charge.

The Hollern business system includes prepayment plans, cash discounts, the waving of deductibles and co-pays and having patients sign hardship papers with little or no proof of hardship. These arrangements are across the board and not based on individual circumstances. The carriers are not notified of the discounts and the arrangements do not qualify as Time of Service arrangements that are common and acceptable. In fact carriers receive the total bill for services so the original amount applies to the deductible (see attached notes from the Hollern CA Training Manual).

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Editor's Note: Those doctors who would like more information about this complaint may contact Dr. Miller through ChiroWeb at DrMiller@DCMedia.com.

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