Former psychiatrist Brian Hyatt was recently found mentally fit to stand trial in his Medicaid fraud case in Pulaski County, Arkansas. Hyatt faces both state and federal criminal charges arising from his work at Northwest Medical Center’s Behavioral Health Unit in Springdale. Former patients have also filed civil lawsuits alleging they were improperly confined, mistreated, or billed for psychiatric care they did not receive.
The former psychiatrist has pleaded not guilty to the state and federal criminal charges, and the civil allegations remain unresolved.
How Did the Investigation into Hyatt Begin?
The Medicaid fraud investigation can be traced to April 2022, when a confidential informant who worked in Northwest Medical Center’s behavioral health unit contacted the Arkansas Medicaid Fraud Control Unit. According to a search warrant affidavit, the informant reported that Hyatt spent only a few minutes each day on the patient floor and had little or no contact with patients.
Investigators then examined Hyatt’s Medicaid billing records and found an unusual pattern. From January 2019 through June 2022, 99.95% of his claims for subsequent hospital care were billed using the highest-severity code. Other Arkansas psychiatrists used that code about 38.76% of the time, according to state data cited in the affidavit.
Investigators also obtained hospital surveillance footage to compare Hyatt’s claimed patient encounters with what happened inside the unit. After reviewing hundreds of hours of footage, investigators reported seeing very limited direct interaction between Hyatt and patients.
What Is Upcoding?
“Upcoding” generally refers to billing an insurer or government health program for a more expensive level of medical service than the care that was actually provided.
Medical billing codes can reflect different levels of patient complexity and physician services. Higher-level codes generally result in higher reimbursement because they are intended for care requiring more intensive evaluation or medical decision-making.
Investigators alleged that Hyatt routinely billed Medicaid at the highest available level even when the records or patient encounters did not support that level of service. The Arkansas Attorney General ultimately charged Hyatt in 2023 with two felony counts of violating the state’s Medicaid Fraud Act. He has pleaded not guilty, and as of September 2026, the state criminal case remains pending.
What Abuse Allegations Have Been Made Against Hyatt?
The investigation expanded beyond billing practices. Former patients filed lawsuits alleging they were kept inside the behavioral health unit against their will, subjected to unnecessary medication or restraints, denied meaningful treatment, or prevented from leaving despite asking to be discharged.
Federal prosecutors brought additional charges in March 2026. A federal grand jury indicted Hyatt and seven other former workers associated with the behavioral health unit on a charge of conspiracy to commit kidnapping.
Prosecutors allege patients were confined through methods that included physical force, chemical restraints, threats, intimidation, and restrictions on telephone access so that insurers could continue to be billed.
Hyatt and a nurse practitioner were also charged with conspiring to distribute controlled substances without a legitimate medical purpose. These allegations are contained in pending criminal charges and have not been proven in court.
What Should Former Patients and Their Families Know?
People who received treatment at Northwest Medical Center’s Behavioral Health Unit may not immediately realize that their experiences could be connected to the broader investigation.
Relevant concerns could include:
- Being kept in the facility after asking to leave
- Receiving medication or restraints without a clear medical reason
- Having little meaningful interaction with a treating psychiatrist
- Discovering billing charges on Medicaid, Medicare, or private insurance records that the patient does not recognize
Former patients and their families may want to preserve medical records, billing statements, insurance explanations of benefits, discharge paperwork, messages, and other documents related to the hospitalization. These materials can help establish what treatment was documented, what was billed, and what the patient experienced.
Contact the Arkansas Personal Injury Lawyers at Odom Law Firm for a Free Consultation
If you or a family member were affected by Hyatt’s alleged actions at Northwest Medical Center’s Behavioral Health Unit, you can speak with our firm about your legal options. We can review a former patient’s records and circumstances, investigate potentially improper treatment or confinement, and determine what legal claims may be available.
For more information, contact an experienced Arkansas personal injury lawyer at Odom Law Firm to schedule a free consultation today.