Hendersonville Physician Indicted on Federal Kickback Charges

Dr. Hailu T. Kabtimer, 56, of Hendersonville, Tennessee, was indicted by a federal grand jury today, charging him with five counts of violating the federal anti-kickback act, announced David Rivera, United States Attorney for the Middle District of Tennessee. 

“Medical providers who break the law to enrich themselves will be caught and prosecuted,” said U.S. Attorney David Rivera. “This office and our law enforcement partners will continue our vigorous efforts to enforce the anti-kickback law and to hold accountable medical professionals who accept illegal cash kickbacks.”

According to the indictment, Dr. Kabtimer entered into an arrangement in March 2013 under which he would be paid cash in exchange for referring patients needing medical equipment to a particular supplier. The indictment alleges that, on eight occasions in 2013 and 2014, Dr. Kabtimer accepted cash kickback payments totaling $3,400 in exchange for referring patients to this medical equipment supplier. The indictment further alleges that Dr. Kabtimer accepted kickbacks of $200 per patient referred for the provision of a CPAP ventilator and $300 per patient referred for the provision of an oxygen unit.

Dr. Kabtimer faces up to 5 years in prison on each count, and also faces forfeiture of any proceeds traceable to the commission of the charged offenses.  His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes. 

An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law. 

The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, and the Tennessee Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys William F. Abely and Thomas J. Jaworski.