Texas Hospital Should Forfeit $32M in Ike Funds, Report States

A federal review says a Houston, Texas hospital should forfeit $32 million in government grants for Hurricane Ike recovery due to misuse of the money.

Riverside General Hospital was named in the Office of Inspector General report released this week. The hospital closed as of April.

Ike hit Galveston in 2008, swamping parts of the city and dumping heavy rain in the region. The hurricane caused $29 billion in damage and left more than three dozen people dead.

Riverside’s main campus and three other locations were damaged by the storm.

The ex-president of Riverside General Hospital, Earnest Gibson III, in June was sentenced to 45 years in prison on convictions for conspiracy to commit health care fraud and conspiracy to commit money laundering. Prosecutors say the case involved $158 million Medicare fraud.