Healthcare Company Tied to Georgia Governor Candidate Settles Medicare Fraud Allegations

A healthcare staffing firm owned by Georgia Republican gubernatorial candidate Rick Jackson has agreed to pay $700,000 to settle allegations of participation in a Medicare fraud scheme targeting seniors, according to the U.S. Attorney’s Office of the Eastern District of Washington.

The settlement, which has become a flashpoint in Georgia’s heated Republican primary race, involves Jackson & Coker, a subsidiary of Jackson Healthcare, the company founded and owned by Jackson. The firm was accused of participating in a kickback scheme that billed Medicare for medically unnecessary equipment.

Political rival and fellow Republican primary candidate Burt Jones has seized on the settlement in campaign advertisements, claiming “Jackson’s company profited off a Medicare fraud scam targeting seniors.” Jones’ advertisement states: “You know what Georgians hate? Being taken advantage of. And that’s what Rick Jackson did.”

The allegations stem from Jackson & Coker’s business relationship with a company called Nationwide, which federal investigators say used telemarketers to contact Medicare beneficiaries and obtain their personal information. This information was then used to generate physician orders for medical equipment that may not have been necessary.

According to federal authorities, physician Edward Salko was placed by Jackson & Coker to work with Nationwide. Salko would sign the equipment orders, which were then billed to Medicare. The scheme involved Nationwide paying Jackson & Coker, which in turn compensated Salko for each order he reviewed.

Federal prosecutors noted that Jackson & Coker “fully cooperated” with the investigation and has since implemented “significant remedial actions designed to improve its legal and compliance efforts and internal controls related to placing providers with telemedicine clients.”

The settlement comes amid increasing scrutiny of Medicare fraud nationwide. Healthcare fraud schemes targeting government programs have resulted in billions of dollars in settlements over the past decade, as federal authorities have stepped up enforcement efforts. The telemedicine sector in particular has seen growing concerns about fraudulent billing practices as the industry has rapidly expanded.

The political ramifications of the settlement are already apparent in Georgia’s Republican gubernatorial primary. Jones and Jackson are locked in an increasingly contentious race, with the Medicare fraud allegations adding to existing tensions. Jackson has filed a defamation lawsuit against Jones related to other claims made during the campaign, signaling the deteriorating relationship between the candidates.

Healthcare industry experts note that settlements like this one, while significant, are not uncommon in the complex regulatory environment of healthcare staffing and Medicare billing. Companies often agree to settlements without admitting wrongdoing to avoid prolonged legal battles and potentially larger financial penalties.

For voters in Georgia, the controversy highlights the business backgrounds of both candidates and raises questions about corporate oversight and responsibility. Jackson’s campaign has emphasized his success as a healthcare entrepreneur, pointing to Jackson Healthcare’s growth into one of the largest healthcare staffing firms in the country.

The primary election outcome may hinge on whether voters view the settlement as evidence of problematic business practices or simply as a regulatory issue in a complex industry. Political analysts suggest the Medicare fraud allegations could resonate particularly strongly with Georgia’s senior voters, who make up a significant portion of the Republican primary electorate.

As the primary campaign continues, both candidates are likely to intensify their focus on business records and character issues in addition to policy positions on taxes, education, and other state priorities.