Medicare Dispute Forces Town to Mobilize and Save Doc: Part I

CMS has accused Bryan Merrick, MD of wrongful Medicare billings on 10 patients over a span of 20 months.

As they would react to a flood, ice storm, or fire, local officials and residents in the rural town of McKenzie, Tenn. are rolling up their sleeves and taking on a force that threatens the loss of jobs and closure of its medical center, which serves a Medicare population dependent on its services to address their healthcare needs.

This is a town where everyone celebrates Veterans Day and the entire population turns out for Christmas parades with floats of tractors, trucks, and vintage autos. When you think of “flyover” towns such as McKenzie, it’s clear why they are robust in their efforts to get involved in a dispute that has pitted their rural doctor against the monolithic federal government, for which they share a general distaste.

What’s at risk is the McKenzie Medical Center, which employs 280 residents, making it the largest employer in the town of 5,300. Also at risk are McKenzie’s elderly, making up approximately 11 percent of the town’s population – and who, up until recently, have depended on the town’s only doctor to monitor their meds and keep them stable. He’s the town’s only internist and the only one who can read an echocardiogram – making for an alarming situation, given McKenzie’s aging Medicare population.

McKenzie’s Bryan Merrick, 65, a physician at the aforementioned McKenzie Medical Center who has been practicing medicine for more than three decades, recently had his Medicare billing privileges pulled by the Centers for Medicare & Medicaid Services (CMS) due to what have been described as simple clerical errors.  

Dr. Merrick has said that CMS revoked his Medicare billing privileges for three years back in April. He claims he was dropped from the Medicare program because he billed Medicare for 10 patients he didn’t see.

However, he argues that the billing mistakes were errors. For example, he said in one case, a staff member mixed up two patients with similar names.

“I didn’t do anything personally wrong, professionally wrong, or unethical,” Dr. Merrick told WBBJ.

He said CMS is questioning a total of $670 in services billed over a 20-month period. The federal government reviewed 30,000 claims submitted by Dr. Merrick, and only 30 billings for 10 patients were identified as improper, less than one-tenth of 1 percent.

Dr. Merrick appealed the CMS decision, but his appeal was denied in August. He plans to take his case before an administrative law judge (ALJ), but there is not a set timeline for that process, according to The Jackson Sun. He has also enlisted the help of former Tennessee State Sen. Roy Herron, an attorney for Dr. Merrick who is asking U.S. Rep. David Kustoff (R-Tenn.) and U.S. Sen. Lamar Alexander (R-Tenn.) to review the case.

“The local hospital has lost its only internist and the local nursing home has lost its medical director,” Herron said. “The medically underserved region is in danger of being even more desperately underserved. And thousands of patients will soon be at risk when they are without their long-time physician.”

During a recent Monitor Mondays Internet radio broadcast, Herron, a program guest, told listeners that because Merrick lost his Medicare privileges, other payers, including Tennessee’s Medicaid program, will also revoke his billing privileges. And private insurance carriers likely will follow.

“The McKenzie (Regional) hospital now has lost its only internist,” Herron said. “The McKenzie nursing home has lost its medical director.”

According to Herron, the inability of Merrick to practice will also impact those who depend on Merrick as an employer. Other healthcare professionals are expected to lose their jobs.

Furthermore, Carroll County is federally designated as a primary care Health Professional Shortage Area as well as a Medically Underserved Area. 

“The loss of Dr. Merrick’s services will hurt many people in this area,” Herron warned during the broadcast. “Some will die, needlessly and wrongfully killed by their – and our – federal government.”

Herron explained that CMS issued a statement accompanying the enactment of its revocation rules and assured providers that its revocation authority would not be used for “isolated occurrences or accidental billing errors.” Instead, revocations were to be directed at providers engaging in a “pattern of improperly billing” and “whose motive and billing practices are questionable, at best, and at worst, of a sort that might prompt an aggressive response from the law enforcement community.” 

jill holland

So last week, Herron, an Eagle Scout, called an emergency meeting of local officials to ask Rep. Kustoff to lobby federal officials on behalf of the doctor as well as his patients. In a show of solidarity, Herron invited four mayors in Carroll County, along with McKenzie Mayor Jill Holland (pictured left). 

Also attending the meeting was Walter Butler, president of Bethel University, located in McKenzie, and the first IBM Thinkpad University in Tennessee. Merrick and his wife and four children, together with his partner, Dr. Volker Winkler, also attended the meeting.

In speaking on behalf of the other mayors, Holland, according to a meeting report obtained by RACmonitor, said that she and the others would not be there if they thought Merrick had done anything wrong. 

“He is the most trusted and well-respected doctor in our community,” Holland said. “For many patients, he is their lifeline. Without him, it is a death sentence.”

Holland reportedly told Rep. Kustoff at the meeting that he was their best hope. She told the congressman that he was their voice. “This is our plea to please help us,” Holland told the congressman.

While at the meeting, Merrick told the congressman of studies that purportedly claim that interrupting the continuity of care for senior citizens increases both hospitalizations and deaths.

Although Kustoff offered to try to get a quicker ALJ hearing for Merrick’s appeal, Merrick told the congressman that his case needed to go the top administrator of CMS.

Winkler told Kustoff that the McKenzie Medical Center couldn’t wait months or years for an ALJ, pointing out that the facility already has not been paid for any of Dr. Merrick’s services to Medicare patients for the past six months. Holland pointed out that elderly patients about to lose their doctor do not have months or years to wait.

In an interview with RACmonitor, Holland, whose mother is also a patient of Dr. Merrick, said that her mother (and Merrick’s other Medicare patients) received a letter from Merrick stating that he would no longer be able to treat them anymore, as he was not being reimbursed by Medicare.

“And the problem there is that these are elderly people we’re talking about,” Holland told RACmonitor. “Many of them will not get another doctor. My own mother has said she’s not getting another doctor. She’s going to continue to see Dr. Merrick, and she’ll have to pay out of pocket, but how many of these people … see their doctor once or twice a month, at least to monitor, depending on the different medications their blood and lab tests?”

Holland said the outcome will be that the health of these patients will diminish.

“These people will die,” Holland said. “Honestly, it’s a death sentence. He (Merrick) is their lifeline to good health, and many of them will not see another doctor. And he’s the only doctor I know that will give his cell phone number to patients. He will do house calls.”

Holland said the current situation with Merrick is already causing a lot of stress among the elderly.

“Their health will deteriorate,” Holland said, “as a result of not being able to see their primary care physician.”

“For a small, rural community, where 5,300 people (live) in our corporate city limits, and when you expand it to our ZIP code you’re looking at 9,000 or 10,000 people in the surrounding communities, he (Merrick) is the only one of two internists in the county. He’s the only one in McKenzie who (can) read echocardiograms,” Holland explained, “and the majority of (his elderly patients) have some sort of heart problems.”

Holland said it’s a tragedy that she’s been told that an ALJ hearing and possible appeal could take up to a year.

“These people don’t have a year,” Holland said. “They don’t have a month.”

“Sometimes, I think we’re just one small tiny rural town that is looked at (in a sense) that we don’t matter, when you look at the big scope, the big picture,” Holland said. “But it’s all of us – these little towns – that make up the heart of America, and that’s what suffers here, because big government has unbendable rules.”

When things happen like this in small communities, everyone knows word travels fast.

“People have been writing letters (and) they’ve been calling legislators,” Holland explained. “This is talked about in churches. If this were in a big city, I think nobody would blink an eye (to help), but here they realize that (Merrick is) their lifeline, and without him they could die. We need help here.”

CORRECTION: This story has been updated. The population of McKenzie is 5,300

Facebook
Twitter
LinkedIn

Chuck Buck

Chuck Buck is the publisher of RACmonitor and is the program host and executive producer of Monitor Monday.

Related Stories

Can Any Physician Enter an Inpatient Order?

Can Any Physician Enter an Inpatient Order?

Let’s talk about the term “attending physician.”  The simplest definition is the physician primarily responsible for a hospitalized patient’s care.  While there may be many

Read More

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

I022426_SQUARE

Fracture Care Coding: Reduce Denials Through Accurate Coding, Sequencing, and Modifier Use

Expert presenters Kathy Pride, RHIT, CPC, CCS-P, CPMA, and Brandi Russell, RHIA, CCS, COC, CPMA, break down complex fracture care coding rules, walk through correct modifier application (-25, -57, 54, 55), and clarify sequencing for initial and subsequent encounters. Attendees will gain the practical knowledge needed to submit clean claims, ensure compliance, and stay one step ahead of payer audits in 2026.

February 24, 2026
Mastering Principal Diagnosis: Coding Precision, Medical Necessity, and Quality Impact

Mastering Principal Diagnosis: Coding Precision, Medical Necessity, and Quality Impact

Accurately determining the principal diagnosis is critical for compliant billing, appropriate reimbursement, and valid quality reporting — yet it remains one of the most subjective and error-prone areas in inpatient coding. In this expert-led session, Cheryl Ericson, RN, MS, CCDS, CDIP, demystifies the complexities of principal diagnosis assignment, bridging the gap between coding rules and clinical reality. Learn how to strengthen your organization’s coding accuracy, reduce denials, and ensure your documentation supports true medical necessity.

December 3, 2025

Proactive Denial Management: Data-Driven Strategies to Prevent Revenue Loss

Denials continue to delay reimbursement, increase administrative burden, and threaten financial stability across healthcare organizations. This essential webcast tackles the root causes—rising payer scrutiny, fragmented workflows, inconsistent documentation, and underused analytics—and offers proven, data-driven strategies to prevent and overturn denials. Attendees will gain practical tools to strengthen documentation and coding accuracy, engage clinicians effectively, and leverage predictive analytics and AI to identify risks before they impact revenue. Through real-world case examples and actionable guidance, this session empowers coding, CDI, and revenue cycle professionals to shift from reactive appeals to proactive denial prevention and revenue protection.

November 25, 2025
Sepsis: Bridging the Clinical Documentation and Coding Gap to Reduce Denials

Sepsis: Bridging the Clinical Documentation and Coding Gap to Reduce Denials

Sepsis remains one of the most frequently denied and contested diagnoses, creating costly revenue loss and compliance risks. In this webcast, Angela Comfort, DBA, MBA, RHIA, CDIP, CCS, CCS-P, provides practical, real-world strategies to align documentation with coding guidelines, reconcile Sepsis-2 and Sepsis-3 definitions, and apply compliant queries. You’ll learn how to identify and address documentation gaps, strengthen provider engagement, and defend diagnoses against payer scrutiny—equipping you to protect reimbursement, improve SOI/ROM capture, and reduce audit vulnerability in this high-risk area.

September 24, 2025

Trending News

Featured Webcasts

The PEPPER Returns – Risk and Opportunity at Your Fingertips

Join Ronald Hirsch, MD, FACP, CHCQM for The PEPPER Returns – Risk and Opportunity at Your Fingertips, a practical webcast that demystifies the PEPPER and shows you how to turn complex claims data into actionable insights. Dr. Hirsch will explain how to interpret key measures, identify compliance risks, uncover missed revenue opportunities, and understand new updates in the PEPPER, all to help your organization stay ahead of audits and use this powerful data proactively.

March 19, 2026

Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue

Stay ahead of the 2026-2027 audit surge with “Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue,” a high-impact webcast led by Michael Calahan, PA, MBA. This concise session gives hospitals and physicians clear insight into the most likely federal audit targets, such as E/M services, split/shared and critical care, observation and admissions, device credits, and Two-Midnight Rule changes, and shows how to tighten documentation, coding, and internal processes to reduce denials, recoupments, and penalties. Attendees walk away with practical best practices to protect revenue, strengthen compliance, and better prepare their teams for inevitable audits.

January 29, 2026

AI in Claims Auditing: Turning Compliance Risks into Defensible Systems

As AI reshapes healthcare compliance, the risk of biased outputs and opaque decision-making grows. This webcast, led by Frank Cohen, delivers a practical Four-Pillar Governance Framework—Transparency, Accountability, Fairness, and Explainability—to help you govern AI-driven claim auditing with confidence. Learn how to identify and mitigate bias, implement robust human oversight, and document defensible AI review processes that regulators and auditors will accept. Discover concrete remedies, from rotation protocols to uncertainty scoring, and actionable steps to evaluate vendors before contracts are signed. In a regulatory landscape that moves faster than ever, gain the tools to stay compliant, defend your processes, and reduce liability while maintaining operational effectiveness.

January 13, 2026

Trending News

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24