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A growing scandal involving Dr. Brian Hyatt, a prominent Arkansas psychiatrist and former chairman of the Arkansas State Medical Board, has captured national attention as more than 90 lawsuits have been filed alleging false imprisonment, patient abuse, and systemic Medicaid fraud at Northwest Medical Center’s Behavioral Health Unit (BHU) in Springdale, Arkansas. What began with a handful of patient complaints has evolved into a major criminal investigation involving state and federal authorities, with video evidence, whistleblower testimonies, and court-ordered patient releases painting a disturbing picture of alleged healthcare fraud and abuse.

Background: The Rise and Fall of Dr. Brian Hyatt

Dr. Brian Hyatt served as the medical director of Northwest Medical Center’s Behavioral Health Unit from January 2018 until May 2022, when his contract was abruptly terminated. During his tenure, he expanded the unit’s capacity to 75 beds and was considered one of Arkansas’s top physicians. He simultaneously held the prestigious position of chairman of the Arkansas State Medical Board until allegations surfaced in late 2022.

By May 2023, facing mounting scrutiny from both state and federal investigations, Hyatt resigned from the State Medical Board. In his resignation letter dated May 16, 2023, he stated that he was “not resigning because of any wrongdoing” but believed his continued participation would be “a distraction from the Board’s duties.” He maintained that he would “continue to defend myself in the proper forum against the false allegations being made against me.”

The Allegations: Unlawful Detention and Patient Abuse at Northwest Medical Center’s Behavioral Health Unit

KNWA Investigation: Old audits and complaints question Rogers doctor’s billing practices

 

Karla Adrian-Caceres: The First to Sue

The case first came to public attention when attorney Aaron Cash’s client, Karla Adrian-Caceres, was held against her will at the BHU for three days. Dr. Hyatt and Northwest employees forced Karla to sign a “voluntary” consent to admission and threatened her with an extended stay if she continued asking to be released. The Washington County Circuit Court twice ordered Karla’s release, the second time requiring a deputy sheriff to rescue her after the Unit blatantly refused to comply with the initial court order. Karla’s lawsuit became the first of what would eventually grow to 90 lawsuits filed against Dr. Hyatt and Northwest Medical Center’s Behavioral Health Unit. In response to Cash’s lawful demands for Karla’s release, Dr. Hyatt sent a message that can be seen in court records.

Darrius Racy: Eight Days of Hospitalization Without Proper Care

Darrius Racy, one of nine plaintiffs initially represented by Odom Law Firm, checked himself into the facility seeking help during a difficult day. What should have been a brief consultation turned into an eight-day nightmare. During his confinement, Racy experienced disturbing conditions that seemed straight out of a movie: he was forced to take medications without being told what they were, witnessed a patient being beaten by an orderly and thrown back into their room, saw another patient violently shoved against a wall and injected with a sedative, and experienced other unnecessary violence. Despite his eight-day stay, Racy only spoke to Dr. Hyatt once, a cursory conversation lasting less than two minutes during which Hyatt never even entered his room. There was no therapy provided.

William VanWhy: Court-Ordered Release After Unlawful Detention

William VanWhy checked himself into Northwest’s Behavioral Health Unit seeking help with depression and anxiety. After a few days at the facility, he found himself fighting to get out. He demanded his release but was denied. Like several other victims, VanWhy had to petition a circuit court for his own release, with the petition stating he was being “unlawfully detained” by Northwest Medical Center-Springdale and Dr. Hyatt. On the day he was granted release, he told deputies that he had asked for three days to be released. When a deputy finally executed a court order for his release, VanWhy was captured on body camera footage expressing his relief: “Oh my gosh. You saved my life.”

VanWhy told NBC News that he remained in the facility for four days despite wanting to leave, stating, “I was not receiving any medical care at all.” While mental health patients in Arkansas can be held against their will for up to 72 hours if they are considered a danger to themselves or others, doctors must obtain a court order and judge’s consent to hold a patient any longer. No petition was filed in VanWhy’s case.

Shannon Williams: Five Days Confined While Begging for Release

Shannon Williams, a 52-year-old mother of three and working nurse, described being confined for five days while insisting she was not suicidal and repeatedly pleading for release. “It felt like I was in a prison,” she told NBC News. “The only glimpse I had of Dr. Hyatt was the back of his head in the hallway. I never actually saw his face.” Williams recalled, “It was like a nightmare. If I cried, I was threatened with even more time. I was terrified.”

Coercion and Threats: How Patients Were Intimidated Into Staying

Multiple victims reported similar patterns of coercion and intimidation. One woman was transported from Washington Regional Hospital to Northwest Hospital in Springdale by ambulance after taking too many Tylenol. She was informed “she was not going home that night” and given a sedative. After being administered the sedative, she was asked to sign consent for admission, effectively signing under duress while impaired. She was then admitted to the Behavioral Health Service Unit at Northwest “voluntarily.”

When she asked when she could go home, more than one employee told her there was a minimum stay and that if she asked to leave, “they would take her to court where a judge would give her a longer stay because the judge always sides with Dr. Hyatt and Northwest.”

Trella Elam, Brooke Stewart, and Madi Dana: Additional Victims Come Forward

Three additional women, Trella Elam, Brooke Stewart, and Madi Dana, all shared their experiences with 5 News, telling a reporter that they, too, were held against their will and threatened. All three women reported feeling they did not receive the care they needed from Dr. Hyatt. Unit staff were evasive about Hyatt’s whereabouts, and patients had little to no contact with him during their stays. Brooke Stewart reported being physically and chemically restrained, given a shot with sedatives every time she woke up during the first few days of her stay. Other patients alleged they never saw Hyatt at all and that his name was blacked out on their wristbands by staff.

The Medicaid Fraud Investigation: Upcoding and Systemic Billing Fraud

How Dr. Hyatt Billed Medicaid at the Highest Rate for Nearly All Patients

Doctors typically bill one of three medical codes each day of a patient’s hospital stay: one indicating a patient is stable or improving, one indicating inadequate response, and one indicating the patient is unstable or has “a significant complication.” According to an affidavit filed against Dr. Brian Hyatt, a staggering 99.95% of the hospital care claims for Medicaid patients under his care were billed under the “significant complication” code, the highest billing rate available. Billing patients at an inappropriately high rate is a type of Medicaid fraud known as “upcoding.”

The affidavit stated that “Dr. Hyatt has a clear outlier status, and his claims are so high they skew the averages on billing codes for the entire Medicaid program in Arkansas.” From 2018 to June 2022, Medicaid disbursed over $4.8 million to Hyatt’s facility, significantly more than payments made to other psychiatrists in Arkansas. This extraordinary billing pattern made it clear that Hyatt billed Medicaid recipients more than any other doctor in his field.

Minimal Patient Contact Despite High Billing Charges

One former patient was charged nearly $14,500 for his five-day stay but never saw Hyatt, a pattern that was not unusual for patients at the facility. Investigators analyzed 45 days of surveillance footage from the hospital, revealing that Hyatt interacted with patients only a handful of times, totaling under 10 minutes, according to a report from the Attorney General’s office.

Surveillance Video Evidence Validates Investigators’ Fraud Allegations

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KNWA/FOX 24 obtained surveillance video used by investigators in the Medicaid fraud investigation. The video shows Dr. Hyatt strolling the halls of Northwest Medical Center’s Behavioral Health Unit, apparently documenting services he did not provide. This footage further validated the many claims against him, showing him walking through hospital corridors without engaging with patients. Investigators believed Hyatt was overbilling Medicaid at a time when former patients claimed they hardly ever saw the doctor.

The video evidence aided Arkansas Attorney General Tim Griffin in filing felony Medicaid fraud charges against Hyatt, who was later arrested, released on bond, and is awaiting trial for those charges.

Criminal Charges and Legal Proceedings Against Dr. Brian Hyatt

State Medicaid Fraud Charges Filed by Arkansas Attorney General

In February 2023, the State Office of the Medicaid Inspector General suspended Dr. Hyatt’s Medicaid billing privileges while he was investigated for Medicaid fraud by the state attorney general’s office. By late 2024, Attorney General Tim Griffin’s office had filed formal charges.

On October 27, 2024, Dr. Brian Hyatt appeared in Pulaski County District Court and entered a plea of not guilty on multiple charges of Medicaid fraud. He was released on a $15,000 bond after surrendering his passport and signing an extradition waiver. Attorney General Tim Griffin stated, “My next step in the criminal justice process is to file formal felony charges for Medicaid fraud against Dr. Hyatt in Pulaski County Circuit Court. Attorneys in my office’s Medicaid Fraud Control Unit will continue to prosecute this case, and I am confident that justice will be served.”

Federal DEA Investigation and Search Warrant

In addition to state charges, Dr. Hyatt faces federal scrutiny. On May 23, 2023, the Drug Enforcement Administration (DEA) executed a search warrant at Hyatt’s private practice office, Pinnacle Premier Psychiatry, in Rogers, Arkansas. At the time, Hyatt was already facing 15 lawsuits from former patients claiming false imprisonment.

The U.S. Attorney’s Office for the Western District of Arkansas confirmed the search warrant execution, with spokesperson Charlie Robbins noting it was “an important step in any lengthy, ongoing investigation.” The scope of the federal criminal probe remains unknown, but the DEA’s involvement suggests potential additional charges beyond Medicaid fraud.

Civil Litigation: 90+ Lawsuits Against Dr. Hyatt and Northwest Medical Center

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Odom Law Firm Leads Representation of Multiple Victims

The civil litigation against Dr. Hyatt and Northwest Medical Center’s Behavioral Health Unit began with seven initial lawsuits filed by five women and two men, each describing their time at the facility under Dr. Hyatt’s oversight. In their lawsuits, each patient stated that they were not allowed to leave for days. This number quickly grew as more victims came forward, reaching 11 plaintiffs, then 15 at the time of the DEA search, and ultimately surpassing 90 lawsuits alleging false imprisonment, patient abuse, negligent care, and fraud.

Odom Law Firm, led by attorneys including Aaron Cash, is proud to lead the litigation in these frightening cases of abuse and fraud. Attorney Aaron Cash stated, “I believe they were running a scheme to detain patients as long as possible, bill their insurance for as long as possible before discharging them and then filling the bed with someone else.” Cash anticipates that more victims will continue to come forward.

The civil lawsuits name Dr. Hyatt along with more than 25 hospital employees, alleging systematic patient abuse, false imprisonment, and fraudulent billing practices that spanned years.

Northwest Medical Center Settlement and Response

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In April 2023, Northwest Medical Center agreed to pay $1.1 million to the state Medicaid program in a settlement with the Arkansas Attorney General’s Office. The settlement involved claims that the hospital failed to adequately justify hospitalizations for 246 patients.

Northwest Medical Center spokesperson Aimee Morrell stated that the hospital refuted any wrongdoing in its settlement, saying, “We trust hospital personnel in all decisions regarding patient care, which rely heavily on the physician’s assessment of the patient, including in matters related to commitment.” The hospital added that it has implemented “a number of safeguards to ensure patients’ rights, including hiring additional providers responsible for the clinical management of our behavioral health patients.”

National Media Coverage of the Dr. Brian Hyatt Case

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International and Domestic News Coverage

The Dr. Hyatt case has garnered extensive national and international media attention, with coverage from major outlets including:

  • NBC Nightly News: Broke the story of fraud and patient abuse in Northwest Medical Center’s BHU for national audiences
  • Daily Mail Online: Recapped NBC’s report, bringing international attention to the case
  • New York Post: Covered the allegations of keeping patients against their will
  • The Independent (UK): Provided international coverage questioning whether Hyatt was imprisoning patients as part of a Medicare scam or if he was the victim of a smear campaign
  • Market Realist: Compared the health insurance fraud scheme alleged against Dr. Hyatt and Northwest Medical Center’s BHU to other Medicaid and Medicare fraud schemes around the country, including tips on how to spot, avoid, and report them

Dr. Hyatt’s Defense and Denial of Allegations

Dr. Hyatt has not been convicted of any crimes and has consistently denied all allegations of misconduct. His legal representatives characterized the situation as a “vicious, orchestrated attack” on his character and professional contributions. They stated that Dr. Hyatt “continues to maintain his innocence and denies the allegations made against him” and expressed his eagerness to defend himself in court.

Hyatt’s legal team contended that he “did not mistreat patients” and adhered to Medicaid billing guidelines “as he understands them.” They emphasized that Medicaid billing is complex and inconsistently applied, which complicates matters for healthcare providers.

Odom Law Firm‘s Continued Advocacy and Legal Representation

Odom Law Firm continues to represent dozens of victims and remains at the forefront of litigation and advocacy in these cases. The firm is actively seeking additional victims who may have been affected by similar mistreatment at Northwest Medical Center’s Behavioral Health Unit. Former patients and employees of Dr. Hyatt and Northwest Medical Center’s Behavioral Health Unit are encouraged to contact the firm so their voices can be heard.

If you or a loved one were held against their will, illegally, by Northwest Medical Center’s behavioral health services unit, experienced fraudulent billing, or witnessed misconduct, Odom Law Firm encourages you to contact their office immediately for a consultation.

Contact Information:
Odom Law Firm
161 W. Van Asche Loop, Suite 1
Fayetteville, AR 72703
Phone: (479) 334-0277 or (479) 442-7575

Frequently Asked Questions About the Dr. Brian Hyatt Case

What Type of Medicaid Fraud Is “Upcoding”?

Upcoding is a form of healthcare fraud where providers bill for more expensive services or higher severity codes than what was actually provided or medically necessary. In Dr. Hyatt’s case, he allegedly billed 99.95% of his Medicaid patients at the highest severity code (“significant complication”), regardless of their actual condition, a statistical impossibility that raised red flags with investigators.

Can Psychiatric Patients Be Held Against Their Will in Arkansas?

Yes, but only under specific legal conditions. Mental health patients in Arkansas can be held against their will for up to 72 hours if they are considered a danger to themselves or others. However, doctors must obtain a court order and a judge’s consent to hold a patient beyond that 72-hour period. Many of Dr. Hyatt’s alleged victims were held for days or weeks without proper court authorization.

How Can I Report Suspected Healthcare Fraud?

If you suspect Medicaid or Medicare fraud, you can report it to the Arkansas Attorney General’s Medicaid Fraud Control Unit, the U.S. Department of Health and Human Services Office of Inspector General, or consult with an attorney experienced in healthcare fraud cases like those at Odom Law Firm.

Conclusion: Amplifying the Voices of False Imprisonment Victims

This comprehensive account of the Dr. Brian Hyatt case demonstrates the importance of patient advocacy, transparent healthcare billing practices, and accountability in psychiatric care. As criminal and civil proceedings continue, Odom Law Firm remains committed to amplifying the voices of those who were falsely imprisoned and ignored for years, ensuring that justice is served for all victims.

 

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