A federal indictment unsealed in March 2026 details allegations of abuse and neglect of patients at a behavioral health unit overseen by Dr. Brian Hyatt, the former chairman of the Arkansas State Medical Board. The indictment, filed in the U.S. District Court for the Western District of Arkansas, charges Hyatt with one count of conspiracy to commit health care fraud and wire fraud, and one count of health care fraud.
The charges stem from Hyatt's tenure as the governing physician and contract owner of the Northwest Medical Center-Springdale's behavioral health unit from 2018 to 2022. Federal prosecutors allege that Hyatt engaged in a scheme to defraud Medicaid and other insurers by admitting patients to the unit and then billing for the highest level of care while providing minimal actual treatment. The indictment states patients were often held against their will and subjected to unnecessary confinement.
Further allegations describe a hostile environment where staff were instructed to keep the unit full for financial gain, with patients receiving little to no meaningful psychiatric care. The indictment cites instances where patients who requested discharge or questioned their treatment were threatened with extended stays. Dr. Hyatt pleaded not guilty to all charges during his arraignment. His trial is pending.
The case has prompted reviews of oversight practices for behavioral health facilities in Arkansas. The Arkansas State Medical Board suspended Hyatt's medical license in 2023 following an earlier state investigation. The federal indictment represents a significant escalation of the legal proceedings against the former board chairman.
