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Arkansas Medical Board not taking action against psychiatrist charged with Medicaid fraud, facing dozens of malpractice lawsuits

Dr. Hyatt is accused of "imprisoning" patients at a Springdale behavioral unit to get more money from the government.

ROGERS, Ark — The Arkansas State Medical Board didn't take disciplinary action against Dr. Brian Hyatt at the board's meeting on Thursday, Dec. 7, when complaints were brought against the psychiatrist. 

The board could take action in future meetings.

Hyatt is facing two criminal counts of Medicaid fraud after a state investigation accused him of overcharging the government and filing Medicaid claims to cover the most extreme cases despite not providing comparable care while mostly not even entering patient's rooms, the investigation alleges.

During the meeting, chairman Dr. Ward Gardner said the board's lawyer advised them to only receive the information for now. Members referred to the cases brought to their attention by number during the discussion but documents obtained from a Freedom of Information request identified the two complaints as involving Hyatt.

As to what the board's position on cases like this has been in the past, Dr. Gardner said over the past four or five years, action has been taken after an admission of guilt or a finding of guilt has been made. 

The prominent Rogers psychiatrist, who up until November 2023 had a private practice, held an executive position on the Arkansas State Medical Board (ASMB) when the findings of the state's investigation came to light and dozens of former patients filed civil lawsuits against him. 

The first complaint filed to the medical board was made by an anonymous party, according to the documents given to 5NEWS. It contained numerous court documents regarding the legal cases against Hyatt.

The second complaint was filed by the daughter of a former patient of Hyatt's, describing her father's suicide after being in Hyatt's care at the Northwest Health Behavioral Unit.

Since Hyatt's contract was terminated by Northwest Medical Center in May 2022, dozens of former patients at the behavioral unit have filed lawsuits against him, all with accusations stating Hyatt (and his staff) did not allow them to leave, despite asking to. 

Judge Karen Whatley, who was formerly presiding over Hyatt’s criminal case, recently recused herself due to a conflict of interest

According to court records, Judge Karen Whatley ordered the case to be transferred to another division, and now Judge Leon Johnson will preside over the case on Jan. 1, 2024.

Judge Whatley’s office said she had previous contact with Hyatt in her previous role as executive director of the Arkansas Medical Board. 

5NEWS will update this article with more information as it becomes available.

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