HOUSTON CLINIC PLEADS GUILTY

The Texas Workers’ Compen-sation Commission reported that following a lengthy investigation of its billing practices by the Travis County District Attorney’s office, a Houston company owned by a former orthopedic surgeon agreed to pay more than $25,000 in restitution and fines and enter a guilty plea to a third-degree felony charge.

Harris County Bone and Joint Clinic Association, a corporation owned by Eric Heston Scheffey, pled guilty on April 5, 2005, to a charge of Securing Execution of a Document by Deception. As part of the plea agreement, the company paid restitution of $24,599, a $1,000 fine and court costs.

The clinic was charged with causing the Texas Workers’ Compensation Insurance Fund and others to issue checks for medical services that were not rendered.

The Public Integrity Unit of the Travis County District Attorney’s Office conducted the investigation in conjunction with the Texas Workers’ Compensation Commission and Texas Mutual Insurance Company, formerly known as the Texas Workers’ Compensation Insurance Fund. Also cooperating in the probe were the Texas Municipal League, the State Office of Risk Management, the University of Texas System and the Texas Association of Small Businesses.

The Texas Board of Medical Examiners revoked Scheffey’s medical license on Feb. 4. It found that Scheffey had performed 29 unnecessary surgeries on 11 patients and also failed to report medical malpractice liability claims.

According to Texas Mutual Insurance Company the board also assessed an administrative penalty of $845,000 and transcript costs of over $9,000 when it revoked Scheffey’s license.

TWCC previously had declined Scheffey’s application to be on the Approved Doctor’s List to treat injured workers in the workers’ compensation system.