If the Walls Could Talk Podcast™ – Episode 3: “Bad Apples”

Throughout the 1990s, the FBI’s investigation into Edgewater Hospital shifted from a billing issue into something far more serious. Episode 3: “Bad Apples” traces how an investigation of another Chicago hospital led them to the insurance fraud scheme happening at Edgewater Hospital. Some of the doctors participating in the fraud at the other hospital also were on staff at Edgewater Hospital.

The feds managed to secretly record multiple conversations about the fraud scheme. They used these tapes to flip other participants in the scheme. In all, they recorded over 900 cassette tapes of conversations. These tapes led investigators to Edgewater Hospital’s management: Roger Ehmen and Peter Rogan. They learned that the two were not only aware of the scheme, but actually were both in on it. 

The FBI also learned that management at Edgewater passed out bogus contracts to doctors in order to get them to send patients to the hospital. They also discovered that the hospital utilized what were known as “patient recruiters”. These recruiters went to homeless shelters in order to get people to agree to check into Edgewater Hospital. They promised these folks a free meal and a warm place to sleep. If that didn’t work, these recruiters also offered money and cigarettes. 

The once proud Chicago hospital soon became known as a “butcher shop”. People within the hospital and in the neighborhood avoided getting treatment there. Nurses reported how doctors were quick to amputate limbs and perform procedures on people who didn’t need them. One patient describes how she ended up at Edgewater’s ER after suffering from a panic attack…despite the EMT questioning if she was sure she wanted to be taken there. This patient was shocked when the doctor pressed on her abdomen and informed her that she needed a hysterectomy. She immediately checked herself out.

As the dirty money continued to flow in, the suspicion that someone might be wearing a wire led to paranoia among hospital staff. This group of bad apples had taken over Edgewater Hospital. Employees wondered: who was in on the scheme? Was someone secretly recording conversations with the hope of getting incriminating information?

The feds eventually set a trap for Peter Rogan by wiring up one of his co-conspirators. When they met in Peter’ office, Peter exploded and wound up saying exactly what they didn’t want to hear…leaving investigators scrambling.   

If the Walls Could Talk Podcast™

Support If the Walls Could Talk Podcast™ on PATREON and hear extra bonus content like our weekly “Second Opinion” episodes.

Learn more about the crooked doctor, Monty McClellan, and his connection to the scheme at Edgewater. We’ll also share what happened when a small TV station recently did a fluff piece on him. It led to many viewers calling the TV station and asking if the TV reporter had bothered to look into his checkered past. The reporter returned the next day to ask some tough questions and things got awkward. Dr. McClellan’s answers are cringeworthy.

A separate investigation of another Chicago hospital led the FBI to Edgewater. We’ll discuss what happened, how the feds got tipped off and why those 900 tapes of secretly recorded conversations were so difficult to obtain.

Hear the full unedited interview with Journalist Bruce Japsen — who covered the story for Crain’s Modern Healthcare and the Chicago Tribune. Bruce explains that as far back as 1993, it was well known among the medical community that something fishy was going on at Edgewater Hospital…and no one stepped in to stop it.

Unlock bonus interviews and behind-the-scenes stories by supporting If the Walls Could Talk Podcast™ on Patreon. For just $10 a month, you can access hours extra content on Patreon. 

The entire series of If the Walls Could Talk Podcast™ is now available. Please leave a review on Apple Podcasts, Google Podcasts or Spotify.