NEWS RELEASE

OFFICE OF THE UNITED STATES ATTORNEY

SOUTHERN DISTRICT OF ILLINOIS

A. COURTNEY COX

UNITED STATES ATTORNEY

Nine Executive Drive, Fairview Heights, Illinois 62208, Telephone (618) 628-3700

For Immediate Release

March 30, 2009

FRANKLIN RURAL HEALTH CLINIC AND ITS PRESIDENT DOCTOR PLEAD GUILTY TO HEALTH CARE FRAUD CHARGES IN FEDERAL COURT

The United States Attorney’s Office for the Southern District of Illinois, announced today that on March 30, 2009, JAMES PHILLIP DURHAM, M.D., age 71, President of FRANKLIN RURAL HEALTH CARE CLINIC, an Illinois corporation, doing business in Christopher, Franklin County, pled guilty to making false statements to a federal health care program. Also today, FRANKLIN RURAL HEALTH CARE CLINIC pled guilty to health care fraud. DURHAM faces a maximum imprisonment of one year; supervised release of one year; and a fine of $100,000. The FRANKLIN RURAL HEALTH CARE CLINIC faces a maximum term of probation of five years and a fine of $500,000. The sentencings are scheduled for July 20, 2009.

The charging documents indicate that DURHAM instructed clinic employees to bill Medicare and Medicaid for non-covered medical services. Medicare was fraudulently billed for $42,503.00 from January 1, 2003 through May 31, 2006. During that same time frame, Medicaid was improperly billed $145,388.46. The total loss amounts to $187,841.86.

The cases were investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Illinois State Police; and the Federal Bureau of Investigation. The cases were prosecuted by Assistant United States Attorney Liam Coonan.

If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health Human Services, Office of Inspector General or call 1-800-447-8477.