Jacksonville Telehealth Provider Rejects Fraud Allegations as City Council Investigates Contract

Jacksonville’s telehealth provider Telescope Health firmly denied allegations of fraud on Wednesday regarding its management of Healthlink JAX, the city’s telehealth program serving uninsured Duval County residents.

The company issued a statement addressing what it called “false allegations” about the program, insisting it has not “engaged in fraud, and any allegation to the contrary is entirely false and without merit.”

The denial coincides with an emergency meeting scheduled by the Special Committee on Duval DOGE (Department of Governmental Efficiency) to examine the telehealth program following concerns raised by City Councilman Rory Diamond about potential misuse of taxpayer funds, conflicts of interest, and fraud allegations related to the contracts.

“I just want to get to the bottom of it and put it out in the sunshine so that the people of Jacksonville know one way or the other if their contracts are fair,” Diamond told local media. He explained that numerous government insiders have contacted him with allegations that include government officials potentially owning entities receiving city funds and diverting contracts to themselves.

Diamond also cited claims of Medicare and Medicaid fraud, suggesting patients were being unnecessarily directed to emergency rooms at significant cost to the city. “If that’s happening, that’s a huge problem,” Diamond said. “I can’t stand corruption. I’m really angry about it.”

Telescope Health categorically rejected these accusations, stating in its response that the company “cannot and has not billed Medicare, Medicaid or other payors for Healthlink JAX patients” since the program specifically serves uninsured patients. The company further emphasized that “no City of Jacksonville official has a financial stake in Telescope Health.”

Dr. Matthew Thompson, CEO and Co-Founder of Telescope Health, defended the company’s record, noting they have “faithfully managed more than 6,800 calls with Healthlink JAX patients and redirected more than $11.1 million in healthcare system costs since the service began in October 2024.”

The controversy highlights ongoing tensions in Jacksonville’s healthcare administration. Diamond acknowledged the program has potentially saved millions by preventing unnecessary emergency room visits but questioned the financial arrangement, pointing out that a previous provider offered similar services at no cost to the city.

“I think the people of Jacksonville should know whether or not we’re paying millions of dollars for a service that was otherwise free,” Diamond said. He clarified that his investigation focuses specifically on Telescope Health’s contract and associated spending. “If we’re paying a million and a half dollars or two million dollars to save one million, that doesn’t make sense.”

Mayor Donna Deegan’s office defended the contract, emphasizing that making healthcare more affordable and accessible has been a priority for the administration. In a statement, a spokesperson noted that the program “was competitively bid through an open and transparent RFP process, which resulted in Telescope Health being awarded the contract over two other proposals.”

The mayor’s office also highlighted that the city’s Office of Inspector General had reviewed the telehealth contract and awarded Telescope Health a high score of 92.6 percent in their evaluation, confirming that the procurement process followed all required protocols.

The political nature of the investigation has drawn criticism from some city officials. Councilman Matt Carlucci questioned Diamond’s approach in a statement, suggesting that if credible evidence of fraud exists, it should be directed to appropriate oversight bodies rather than discussed in a public committee meeting.

“For the sake of public trust and basic good governance, I believe it is time to dissolve the DOGE Committee and return all oversight to our regular committees and established watchdogs. Jacksonville deserves serious oversight, not political theater,” Carlucci said.

The emergency meeting, scheduled to begin at 3 p.m. Wednesday, is expected to examine these allegations in detail as the city continues to navigate the complex intersection of healthcare access, fiscal responsibility, and proper oversight of municipal contracts.