Tennessee Psychologist Donald McCoy Sentenced for Fraud

A federal judge sentenced psychologist Donald McCoy to 41 months in prison after he admitted to defrauding health care programs by billing for psychotherapy services that were never delivered or were impossible given the hours claimed, prosecutors said. McCoy, 54, of Murfreesboro, submitted claims to TennCare showing patients received more than 24 hours of care a day and billed for sessions on holidays and weekends that never occurred, according to the U.S. Attorney’s Office for the Middle District of Tennessee.

McCoy was an authorized provider for TennCare and treated vulnerable children under the care of the Department of Children’s Services, yet investigators found numerous instances where he claimed hours of family therapy that never happened. The Tennessee Bureau of Investigation’s analysis revealed that some invoices purported services exceeding 72 hours per day, an obvious impossibility that highlights systemic weaknesses in oversight, authorities said. McCoy pleaded guilty to health care fraud, mail fraud and money laundering and was ordered to pay over $1.2 million in restitution.

The sentence underscores how a clinician entrusted with the care of minors can exploit public health programs for financial gain, critics said. Federal prosecutors, including U.S. Attorney Donald Q. Cochran, emphasized the need to protect taxpayers and clients alike from fraudulent billing practices. McCoy’s case raises questions about regulatory supervision in mental health services and the potential for harm when psychiatric billing is governed more by profit incentives than by patient welfare.