Oregon couple whose home was destroyed in explosion may face medical-billing investigation in California

PROSPECT — The owners of a house near Lost Creek Lake that was destroyed in a Saturday explosion face a possible investigation in California over suspicions of medical-billing fraud based on a Medford company’s internal audit.

Mike and Karyl McNall’s medical-billing company, called Pioneer Healthcare Management LLC, face investigation by state and federal authorities in California based on allegedly false billing statements found by the Medford-based Pacific Retirement Services.

Mike McNall said he was unaware his company was under financial scrutiny and that he “doesn’t fear any type of audit or anything” involving his company.

“We’ve never participated in any type of billing fraud,” McNall said.

Pioneer Healthcare Management was a vendor for two Northern California retirement communities managed by a PRS subsidiary, according to Brian McLemore, PRS’s chief executive officer. The McNalls’ company was terminated as a vendor in April 2015, McLemore said.

In a Monday evening letter to Rogue Valley Manor residents obtained by the Mail Tribune, McLemore stated that a PRS internal investigation following the termination uncovered false billing statements provided by Pioneer Healthcare Management to Medi-Cal.

That information was turned over to the state of California and the Office of Inspector General of the U.S. Department of Health and Human Services, McLemore said.

The agencies have informed PRS by letter that they plan an investigation of McNall’s company based on documents provided by PRS, McLemore said.

McNall claimed Sunday to the Mail Tribune that he believes the explosion was deliberately set and that he believed it involved documents and other information McNall has involving PRS.

McLemore said Monday that McNall’s company did not have any PRS records, but it did have records from the subsidiary’s client.

McLemore’s letter to Manor residents said the McNalls have made “numerous false allegations” against PRS since the contract termination a year ago.

McNall also claimed to the Mail Tribune that he believed the explosion was tied to an October report of a home invasion and assault that led to Karyl McNall receiving physical injuries.

Jackson County sheriff’s Capt. Tim Snaith said his agency did investigate the reported assault, but the case was open and inactive after investigators were unable to identify any suspects. Snaith said he had no other information about that case.

McNall maintained Monday that Saturday’s explosion and last month’s reported assault were connected, but “I don’t know who is behind it.”

Investigators today were sifting through what’s left of the house, which reportedly was empty at the time of the explosion, which neighbors said felt like they were being bombed.

Prospect Fire Chief Greg Schaffer said the Oregon State Fire Marshal’s Office was joined by FBI agents and Jackson County sheriff’s deputies and the OSP bomb squad in launching an investigation Monday into the explosion and fire.

The 4,569-square-foot house, at 225 Flounce Rock Road, was destroyed by the explosion and ensuing fire, Schaffer said. The McNalls said they were headed home from Medford at the time of the explosion.

“The only thing we know is it was a massive explosion that took down a (large) house,” Schaffer said. “We don’t know what the explosion was caused by.”

State and federal investigators remained mum Monday on what they have discovered or where their probe is leading them.

FBI spokeswoman Beth Anne Steele directed any questions about the investigation to the Jackson County Sheriff’s Department, which in turn directed questions to the Oregon State Fire Marshal’s Office.

The Oregon State Police, which oversees the state fire marshal’s office, issued a news release Tuesday saying that it was continuing to investigate the explosion.

Resource :  http://registerguard.com/rg/news/local/34260310-75/oregon-state-police-investigate-explosion-that-destroyed-house-on-lost-creek-lake.html.csp

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