A 55-year-old doctor facing numerous felony charges in a Medicaid and insurance fraud investigation was found dead in a Carmel hotel room Tuesday.

Kokomo police Lt. Jeffrey Kirk said Dr. David B. Kennedy, a doctor with the Kennedy Clinic, was found dead Tuesday afternoon at Carmel’s Courtyard by Marriott.

The Cicero doctor who was in charge of the Kokomo psychiatric counseling service at 2703 S. Park Road faced one count of corrupt business influence, six counts of Medicaid fraud and nine counts of insurance fraud.

Information about the cause of death was unavailable Tuesday.

Carmel police were called to the hotel at 1:40 p.m. to a report of a man lying dead on a bed, said Tim Green, Carmel’s assistant police chief.

Green said Kennedy was alone in the room.

“We’re handling it as a death investigation, and we don’t suspect foul play,” Green said.

Kennedy, 55, also is the medical director of Logansport State Hospital.

Two women who worked at the clinic — Wavalyn Williams, 63, and Barbara Emore, 43, both of Kokomo — also were charged with one count each of corrupt business influence, aiding or inducing Medicaid fraud and aiding or inducing insurance fraud. Police said the women did billing and filing work at the Kennedy Clinic in Kokomo.

KPD’s Kirk said Kennedy routinely billed Anthem and Medicaid for more hours of service than he could have provided during a regular working day.

Kirk said Kennedy billed for 24 hours of service in a single day in 2004. On other days cited in the charges, he billed for 10 to 15 hours a day at a time when he only was supposed to be working part time.

Anthem audited office records after receiving a call from a patient with a question about a billing code on an insurance form. The Medicaid fraud unit of the Indiana attorney general’s office also audited the clinic.

Kirk said three therapists working at the clinic will not be charged.

Mike Fletcher may be reached at (765) 454-8565 or via e-mail at mike.fletcher@kokomotribune.com

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