Texas Justices Appear Willing to Remand Medicaid Fraud Judgment

The Texas Supreme Court seemed inclined to send a $16 million Medicaid fraud judgment back to a trial court rather than let the judgment against Dr. Richard Malouf stand.

Malouf, who founded All Smiles Dental Center, billed the state hundreds of thousands of dollars for services he didn’t perform. He was confused by Medicaid’s often-changing billing procedures and therefore a trial court judge incorrectly granted the state’s motion for summary judgment without a jury trial, his lawyer told the justices.

The state provided incorrect billing guidance that led Malouf to provide false information on over 1,800 Medicaid claims from 2007 ...