ROGERS, Ark — Court documents confirm that the judge originally presiding over Dr. Brian Hyatt's criminal trial where he's accused of large-scale Medicaid fraud has recused herself.
According to online court records, Judge Karen Whatley ordered the case to be transferred to another division, and now Judge Leon Johnson will preside over the case on Jan. 1, 2024.
Judge Whatley's office has stated that she recused herself due to her prior appointment as the Executive Director of the Arkansas State Medical Board, a board that Dr. Hyatt had served on.
Whatley was appointed by Gov. Asa Hutchinson in February 2022. Whatley was previously the former governor’s chief legal counsel and served as his director of legislative and agency affairs.
Here's what we know so far about the criminal charges and civil lawsuits Hyatt is facing:
Medicaid fraud charges
Hyatt, a Rogers psychiatrist who held an executive position on the Arkansas State Medical Board, is facing two charges of Medicaid fraud. The counts allege that during his tenure as the director of Northwest Medical's Behavioral Health unit in Springdale, he billed Medicaid at the highest possible code 99.9% of the time, despite reported video evidence of him not even entering some patients' rooms.
On Monday, Oct. 9, 2023, the arrest warrant for Hyatt was formally issued— over eight months after the Office of the Medicaid Inspector General sent a letter to him citing credible allegations of Medicaid fraud and suspending his Medicaid services. Although documents say Hyatt's contract with Northwest Medical Center was abruptly terminated in May 2022, he still held a private practice in Rogers, Pinnacle Premier Psychiatry, which as of this week, seems to be shuttered.
The state's investigation into Hyatt began after a confidential informant who claimed to have worked with Hyatt at the behavioral unit contacted the Medicaid Fraud Control Unit in April 2022.
The affidavit claims Hyatt used the highest-priced Medicaid code 99.9% of the time, and that the national average is 21%.
Former patients file malpractice lawsuits
Since Hyatt's contract was terminated by Northwest Medical Center in May 2022, dozens of former patients at the behavioral unit have filed lawsuits against him, all with accusations stating Hyatt (and his staff) did not allow them to leave—in some cases, a judge allegedly had to order the doctor to release patients.
There were also reports of Hyatt directing staff to mark out his name on the armbands of patients because "Hyatt did not want the patients to know his name."
The investigator said Dr. Hyatt's records falsely claimed he had daily face-to-face evaluations and management with all of his patients. However, after watching months of surveillance video of the behavioral unit, the investigator said they did not see Dr. Hyatt have contact with a patient at any point.
A former patient who is suing Hyatt told 5NEWS that after about 12 hours in the unit, he knew something wasn’t right. He said he never met with a doctor and only went to one group therapy session during his five-day stay, saying “We’d talk about our favorite sonic drink. That was the extent of the therapy that I received there."
As of Dec. 6, 2023, Hyatt is facing dozens of malpractice lawsuits all with similar stories accusing him of false imprisonment and other illegal methods allegedly meant to keep them under his care.
5NEWS will update this article with more information as it becomes available.
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