The Federal Bureau of Investigation is conducting an inquiry into the Oak Bluffs EMS and fire department, multiple sources familiar with the investigation have confirmed.
The Federal Bureau of Investigation is conducting an inquiry into the Oak Bluffs EMS and fire department, multiple sources familiar with the investigation have confirmed. The months-long inquiry began this past spring, with questions focused on the billing practices of the town ambulance service.
The FBI does not confirm or deny the existence of ongoing investigations.
But current and former members of the fire department confirmed that the FBI has been conducting interviews with members of the department.
At least four members of the department have been issued subpoenas to appear before a grand jury in U.S. District Court in Boston, last month and this month. All but one who spoke with the Gazette did so on condition of anonymity, because of FBI requests that they not discuss the matter publicly until they have testified before a grand jury. Several expressed concern about retribution.
Richard Michelson, a former lieutenant and 17-year veteran of the town EMS and fire department, said he was interviewed at his Oak Bluffs home by FBI agents on Dec. 26. According to Mr. Michelson, the interview lasted approximately 90 minutes, with questioning focused on ambulance billing practices. He said he has since received a subpoena to appear before a federal grand jury on Jan. 21.
Another current EMS employee who did not want to be named said the interviews revolved around ambulance finances, including billing, mileage, the role of the fire chief in billing and how information is sent to Comstar — a third-party agency used widely by Massachusetts towns, including Oak Bluffs, for ambulance billing. The ambulance service is operated by the fire department.
Selectman and board chairman Brian Packish said this week that he was aware of the investigation and had spoken last week with FBI agent Katherine Kelly, who supervises the agency’s Lakeville office. Town administrator Robert Whritenour also spoke with Ms. Kelly, Mr. Packish said.
“They have spoken with our chief of police and various members of the fire department,” Mr. Packish said. “We had a variety of questions because there hasn’t been any notification as to exactly what the investigation is in relation to. And basically her answer to any question asked was very consistent, and very simple: the FBI has an ongoing investigation and they do not comment on ongoing investigations. That is the extent of the information that we have.”
Mr. Packish said he and Mr. Whritenour had not been interviewed by the FBI, and as far as he knew, no one outside the fire department had been questioned.
He also said he was generally aware of the inquiry after hearing “mumblings” this fall, but could not say whether it centered around EMS and fire department finances.
“The only information we have is that they have made public record requests. And these public records requests are for a variety of things, and they are not just specific to that,” the selectman said.
Reached by telephone this week, fire chief John Rose said he was on vacation and declined to comment.
In an email to the Gazette Tuesday, Mr. Whritenour said he could not comment on the FBI investigation or the public records requests.
“The FBI has specifically requested that the town not comment on their inquiry, so I won’t be able to make further comment on that,” he wrote.
On Wednesday this week, an email went out to all fire department employees from Mr. Whritenour requesting retention of all documents involving fire department business, including paper documents, emails and text messages.
Oak Bluffs EMS has had a right of first refusal on all off-Island ambulance runs since 1994, under an agreement with the Martha’s Vineyard Hospital. Proceeds from off-Island transfers go into the town ambulance reserve fund.
The town is the only one on the Island with such a reserve fund. The fund was created by an act of the state legislature in 1993 “to purchase and equip public safety vehicles for police and fire departments and for the payment of EMT compensation for ambulance transportation outside the county of Dukes County.”
The town uses Comstar, a Rowley-based ambulance billing service, to help coordinate complex insurance reimbursements for off-Island ambulance trips. Comstar handles billing for all four ambulance services on the Island and more than 200 municipalities in New England. Contacted by telephone Tuesday, Comstar CEO Rick Martin directed all questions back to the town. He declined to say whether the company had been contacted by the FBI.
The issue with ambulance billing briefly surfaced at a selectmen’s meeting on Sept. 24, when Mr. Whritenour told the board that Comstar had informed him there were problems with reimbursements from Medicare and Medicaid because the department had billed for ambulance runs that did not terminate at a Medicare-certified facility. In a video of the meeting, Mr. Whritenour said the town and Comstar looked back at the billings after rumors started circulating about a potential investigation into the town’s ambulance finances.
He explained that when an Oak Bluffs ambulance transports a patient to the mainland and another ambulance takes that patient to his or her final destination, Oak Bluffs cannot bill Medicare/Medicaid for the trip, and Oak Bluffs is left “holding the bag,” for the costs of that run. Federal guidelines also prohibit Oak Bluffs EMS from billing patients directly to recoup costs. Medicare is a federal program that provides health care coverage for the disabled and for people over 65 years old, irrespective of income. Medicaid provides health care coverage for low-income families and individuals.
Despite the rule, the town requested $37,535 in reimbursements for some non-Medicare/Medicaid ambulance runs between the years 2013 and 2015. The practice was stopped in 2016 when town officials became aware of the rule, Mr. Whritenour said at the September meeting.
The overbilled amounts totaled $26,084 for Medicare and $11,450 for Medicaid. Mr Whritenour said in an email this week that the town is now working with Comstar to credit back the overbillings.
“The town has directed Comstar to contact the Medicare folks to arrange for a credit on any of the overpayments we have discovered for trips that were transferred in Woods Hole, and they have done that. I am awaiting confirmation that the credit has been finalized,” he said.
Mr. Whritenour said he was unaware of any further problems regarding the town’s ambulance billings.
“We’re not aware of any other billing discrepancies at this time,” he wrote in a followup email.
In this week’s email to fire department employees, Mr. Whritenour wrote in part: “I’m sure you are aware of ongoing inquiries from outside agencies into departmental operations . . . To help us all do our part in addressing these matters I’m reaching out to you to request that you preserve any and all documents you may have pertaining to the Oak Bluffs fire department.”
The email went on to instruct employees to retain electronic documents — including emails, texts, Twitter, Facebook, Snapchat, or other social media communications — that mention or relate to the work they or others have done for the fire department “no matter how far back they may go.”
“We may be reaching out to you in the near future to request specific documents in connection with several active projects in which we’re engaged,” the email added.
The selectmen have met in executive session with their fire chief numerous times late this summer and fall, for reasons that have not been explained. Mr. Packish said he could not comment on the nature of the closed-door sessions. He also lamented the vagueness surrounding the investigation, and said hoped more information would be available soon.
“I wish I had more to offer, because the people in our town deserve the information, they deserve to know what is going on,” Mr. Packish said. “But due to the sensitivity of these matters, this is held in confidence for various reasons, and the FBI, I think, is well within their rights to not comment.”

Comments
It’s nice to have the FBI
Taxpayer IslandIt’s nice to have the FBI visit and show us they are watching out for our tax dollars. This is an important story, even if the dollars are minuscule. Meanwhile the IRS and Massachusetts Department of Revenue should relocate their offices to this island. They could fund healthcare and education for all if they just took a quick look at our economy. Cash economy like no other with total contempt for the regulators.
So correct Taxpayer
ECS Ft Lauderdale / EdgartownSo correct Taxpayer
Thank you to the Town
OB4Life Oak bluffsThank you to the Town Administrator and Selectmen for doing the right thing and not giving in to the conspiracy theories.
Does any one really think the
Lawrence NY WinterDoes any one really think the FBI is taking the time to come here and interview everyone over a tiny $38,000? I have news for you, they have info on something much much larger I would say lol
I SOOOO agree!
KM West TisburyI SOOOO agree!
I would agree with this. The
William EdgI would agree with this. The Feds would not chase such a paltry sum (compared to the Federal budget) unless it was for much more money or they want someone to testify up to the next larger fish.
@OB4Life - what “conspiracy
Townie Oak bluffs@OB4Life - what “conspiracy theories” are you talking about? The town officials and administrator can’t say anything because they legally can’t. It sounds like these aren’t theories but facts that there is a serious issue with the way the department is handling billing and other issues that go on in the department. The billing company can only do so much monitoring about what is or is not billed for Medicare, Medicaid or any other insurances. So, if the FBI has found enough evidence to not only look into these allegations but to actually have grand jury trials then I’d say it’s more then just a “theory”. Someone screwed up and it involves the front office at the fire station
Don’t crucify the front
Marcus TisburyDon’t crucify the front office of the fire department just yet. A contracted Billing Company should have a lot more experience and education about Medicare and Medicaid billing than any local fire department. Let’s wait and find out what, if anything, went wrong before placing any blame.
That's right. It's sad to see
Mack and the boys EdgartownThat's right. It's sad to see commenters rushing to condemn members of our community without having all the facts.
Hmmmm. Seems the front
T Bone Oak BluffsHmmmm. Seems the front office of the OBFD was maybe spending too much time in the back office. Too the tune of $97,500.
Townie... exactly. People are
OB4Life Oak bluffsTownie... exactly. People are creating this conspiracy theory that the Town Administrator and Selectmen are hiding something when they legally aren’t allowed to speak about it. Anyone spewing that simply has no idea what is going on. If it were their wrong doing why hasn’t the FBI been to their office for interviews? It’s clear the billing company is there to know what can and can’t be billed to Medicaid and they billed for a service that was in fact provided and should be paid for. To say OB is supposed to pay this cost out of pocket is crazy and yet another way OB gets the bill for all the Towns. Once the FBI does what they do, then let’s see how the top officials react
@OB4life do you blame the
Townie Oak bluffs@OB4life do you blame the credit card company for a department store double charging you for an items you didn’t buy? No you don’t. Look at all the other ambulance companies that have had to file bankruptcy they don’t go after the billing company they go after the people who are falsely creating documentation to get bigger payouts and make it believable. And as tax payers you should be worried because if they find what they are, more then likely, finding then the department and town will be paying back a LOOOOOOOOOOT of money. Just look at Brewster ambulance years ago, Response ambulance (no longer a company due to Medicare fraud and having to pay back hundreds of thousands). The FBI isn’t here on a whim
Great reporting. The facts ma
Its_Pronounced_SKAH-LUP EdgartownGreat reporting. The facts ma'am, just the facts. Now, doesn't the FBI have better things to do than investigate American citizens?
“American “ citizens do
Susan Desmarais Oak Bluffs“American “ citizens do plenty of things that require investigation.
American citizens commit
Carla CooperAmerican citizens commit federal crimes. What do you suggest?
that's exactly what the FBI
ECS fthat's exactly what the FBI is supposed to do and they do it well if not perfectly.
@ Its_Pronounced_SKAH-LUP.
Drain the swamp Oak Bluffs@ Its_Pronounced_SKAH-LUP. “The Federal Bureau of Investigation is the domestic intelligence and security service of the United States and its principal federal law enforcement agency”. So no. They don’t have anything better to do because this is in fact what they do, investigate domestic crimes.
Hmmm. A grand jury is
T Bone Oak BluffsHmmm. A grand jury is hearing evidence. Sounds like this is pretty far along. I'm guessing some folks aren't sleeping well.
Agree T Bone cant wait to
ECS Ft Lauderdale / EdgartownAgree T Bone cant wait to hear the whole story
Add new comment