Healthcare billing scheme charges against El Paso hospital executives dismissed

Editor's Note: The original story has been updated to reflect the fact that the case was dismissed. The co-defendants' names were also removed from the article.

EL PASO, Texas (KVIA) -- New court documents show that the case against two El Paso hospital executives has been dismissed.

The CEO and owner of long-term acute car hospitals in El Paso were previously accused of an alleged pass-through healthcare billing scheme.

The two hospital executives turned themselves in in July 2025. Court documents originally accused the pair of allegedly conspiring to submit false urine drug test insurance claims to Blue Cross Blue Shield.

Prosecutors say one of the former defendants, who lives in Puerto Rico and the Dallas area, voluntarily surrendered to the FBI in El Paso and made his initial court appearance on July 22. A federal magistrate then released him on a $150,000 bond.

The other hospital executive also surrendered and made his first court appearance on July 24. He was then released on a $50,000 bond.