Arkansas psychiatrist, hospital face false imprisonment claims in lawsuit

An Arkansas psychiatrist under investigation for Medicaid fraud is also accused of false imprisonment in a lawsuit, Fox affiliate KNWA reported May 4.

Eleven people have sued Northwest Medical Center in Springdale, Ark., and psychiatrist Brian Hyatt, MD, former chair of the Arkansas State Medical Board and former medical director of the hospital's behavioral health unit, the report said. Seven of the lawsuits allege false imprisonment.

"At least some of the patients [in] the unit were being held against their will and only a physician could make the decision to impose a 72-hour hold," according to a search warrant affidavit related to Dr. Hyatt's Medicaid fraud case.

"While it is not our practice to comment on pending litigation matters, I can share that last spring, we undertook a number of actions to ensure our patients' safety, including hiring new providers responsible for the clinical care of our behavioral health patients in early May 2022," Northwest Medical Center spokesperson Christina Bull told KNWA.

All payments for Medicaid services to Dr. Hyatt were suspended earlier in 2023 by Arkansas' Office of Medicaid Inspector General after allegations surfaced that he billed patients at a higher rate than is appropriate. Investigators reviewed surveillance footage allegedly showing Dr. Hyatt had not seen or made contact with any patients for whom he was submitting Medicaid claims.

"Dr. Hyatt is a clear outlier, and his claims are so high they skew the averages on certain codes for the entire Medicaid program in Arkansas," according to a letter from the state Medicaid IG's office.

Dr. Hyatt's attorney responded to one of the 11 lawsuits, denying the claims and asking for a dismissal, the report said. The hospital also denied the allegations in the same lawsuit, and the plaintiff dismissed claims against a nurse previously listed as a defendant. 

Dr. Hyatt and the hospital still have time to file responses to the other lawsuits.

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