A former Mississippi healthcare business owner has been sentenced to five years in prison after being convicted in a Medicaid fraud case involving claims for services that were never provided and substantial overbilling for other services.
Katricia Smith, 47, of Olive Branch, formerly owned and operated KLS Medical Services LLC in DeSoto County. Her case was among the Mississippi prosecutions announced through the Justice Department’s 2026 National Health Care Fraud Takedown.
Federal takedown materials said KLS submitted claims to the Mississippi Division of Medicaid for services that patients never received and substantially overbilled other services that were otherwise authorized under a district plan. Smith was ultimately convicted on one count of wire fraud.
Madison County Circuit Court Judge Steve Ratcliff sentenced Smith to five years in the custody of the Mississippi Department of Corrections and ordered her to pay $3,190,017.93 in restitution to Mississippi Medicaid, DeSoto County News reported.
The Claims Included Services That Were Never Provided
The Justice Department’s case summary said Smith, as owner and operator of KLS Medical Services, fraudulently claimed that services had been provided to patients under a district plan when those services had never actually been rendered.
Other claims involved services that were authorized under the plan but were substantially overbilled, according to the DOJ summary.
The case resulted in Smith’s conviction on one count of wire fraud. The September 8 sentencing report said the conduct occurred during 2023 and 2024.
Medicaid Had Paid About $4.48 Million on the Claims
When Smith’s case was announced as part of the national healthcare fraud takedown, the Justice Department said the Mississippi Division of Medicaid had paid approximately $4,480,939.29 based on the false and fraudulent claims.
The amount Smith was ordered to repay at sentencing is lower. Judge Ratcliff ordered $3,190,017.93 in restitution to the Mississippi Division of Medicaid.
The available sentencing report and earlier federal case summary do not explain the difference between the approximately $4.48 million previously identified as Medicaid payments and the $3.19 million restitution order.
Smith Was One of 11 Mississippi Defendants Announced in June
Smith’s case was among 11 Mississippi indictments announced in June as part of the 2026 National Health Care Fraud Takedown. The Mississippi Attorney General’s Office said those state cases collectively involved more than $12.3 million in alleged Medicaid fraud.
The defendants were charged in separate cases involving allegations such as billing for services that were never provided, fraudulent documentation and other improper Medicaid claims.
Smith’s case has now moved beyond the allegation stage. Her wire fraud conviction resulted in the five-year prison sentence and multimillion-dollar restitution order. The Mississippi Attorney General’s Office and the Mississippi Division of Medicaid Program Integrity investigated the case, and the Attorney General’s Office prosecuted it.
What to Do if Medicaid Is Billed for Care You Never Received
The Mississippi Division of Medicaid specifically identifies billing for services that were never rendered as provider fraud or abuse. The agency also lists inappropriate billing that causes a loss to Medicaid, unsupported claims and falsified medical or treatment records among the conduct that can be reported.
Someone who learns that Medicaid was billed for care they did not receive should keep any records that help show what treatment actually occurred, such as appointment information, provider communications or benefit documents, and report the discrepancy rather than assuming it is an ordinary billing mistake.
Suspected Medicaid fraud or abuse can be reported to the Mississippi Division of Medicaid’s Office of Program Integrity through its secure online form or by calling 800-880-5920. The agency also lists 601-576-4162 for fraud reports.
Mississippi Medicaid advises people not to send protected health information or personally identifiable information through ordinary email. Its secure reporting form is the safer option when a complaint includes sensitive medical or personal details.