MEMPHIS, TN — A Memphis nurse practitioner was arrested on March 4, 2026, following a multi-year investigation into allegations she fraudulently billed Tennessee's Medicaid program for patient services while traveling abroad, according to the Tennessee Bureau of Investigation.
Valarie Kershaw Berry, 45, faces 23 counts of TennCare fraud and one count of theft of property valued between $10,000 and $60,000, as reported by the TBI's Medicaid Fraud Control Division. Berry was taken into custody and booked into Shelby County Jail before being released on her own recognizance the same day.
The investigation began in April 2022 when special agents with the TBI's Medicaid Fraud Control Division received a fraud referral from the U.S. Attorney's Office, according to official statements. Investigators allege that Berry was traveling outside the United States from May 16 through May 20, 2022, yet Tennessee's Medicaid program was billed for 23 separate patient office visits and prescription services during that four-day window.
According to multiple news outlets reporting on the case, the alleged scheme involved billing the state healthcare program for services that could not have been provided given Berry's documented absence from the country. TennCare, Tennessee's Medicaid program, serves low-income residents, children, pregnant women, older adults, and individuals with disabilities across the state.
The charges represent serious allegations within Tennessee's healthcare system. Federal and state regulations require that healthcare providers personally deliver services for which they bill government insurance programs. Medicaid fraud not only diverts taxpayer funds but can also compromise patient care and undermine trust in healthcare delivery systems.
Berry's arrest comes after nearly four years of investigation by the TBI's specialized Medicaid Fraud Control Division, which receives the majority of its funding from the federal government to investigate and prosecute fraud within state Medicaid programs. The division operates under a federal grant providing 75 percent of its budget, with the remaining quarter funded by Tennessee taxpayers.
Understanding TennCare Fraud
TennCare fraud occurs when healthcare providers, beneficiaries, or other parties deliberately deceive the state Medicaid program for financial gain. Common schemes include billing for services not rendered, submitting claims for patients not seen, upcoding procedures to receive higher reimbursements, and kickback arrangements.
According to federal law, Medicaid fraud can result in criminal penalties including imprisonment, substantial fines, and mandatory restitution. Healthcare providers convicted of Medicaid fraud typically face exclusion from participating in federal healthcare programs, effectively ending their ability to treat Medicare and Medicaid patients.
The alleged theft amount in Berry's case—between $10,000 and $60,000—represents the estimated value of fraudulent billings submitted to TennCare during the four-day period in question, as reported by investigators. This figure reflects the cost to Tennessee taxpayers and the federal government, which jointly fund the TennCare program.
The Investigation Process
The TBI's Medicaid Fraud Control Division employs special agents trained in healthcare fraud investigation techniques. These agents work closely with federal prosecutors, state agencies, and healthcare program administrators to identify suspicious billing patterns and investigate allegations of fraud.
In Berry's case, the initial referral came from the U.S. Attorney's Office, suggesting potential coordination between state and federal authorities. Such referrals often result from data analysis that identifies unusual billing patterns, provider complaints, or tips from whistleblowers within healthcare organizations.
Investigators typically examine travel records, billing submissions, patient medical records, and electronic health record system logs to establish whether services billed actually occurred. In cases involving allegations of billing while absent, documentation such as passport stamps, flight records, and credit card transactions can provide evidence of a provider's whereabouts during the period in question.
Legal Proceedings and Presumption of Innocence
Berry is presumed innocent unless and until proven guilty beyond a reasonable doubt through due process of law, as authorities emphasized in announcing the charges. The allegations represent accusations of criminal conduct, not evidence of guilt.
If convicted on all counts, Berry could face significant prison time and financial penalties. Tennessee law treats TennCare fraud as a serious felony offense, with penalties varying based on the amount of fraudulent billings and the number of violations.
Healthcare fraud prosecutions often involve complex financial evidence and require prosecutors to prove intentional deception rather than billing errors or administrative mistakes. Defense attorneys in such cases may argue that billing irregularities resulted from staff errors, misunderstandings of billing requirements, or other factors not involving criminal intent.
Resources for Families
Individuals with concerns about potential Medicaid fraud or healthcare billing irregularities can report suspicious activity to the Tennessee Bureau of Investigation's Medicaid Fraud Control Division or the Tennessee Department of Finance and Administration, which oversees TennCare.
The National Long-Term Care Ombudsman Resource Center provides assistance to families seeking information about healthcare quality and patient rights. The organization operates a national hotline at 1-800-677-1116 and maintains resources at ltcombudsman.org.
Patients who believe they have been affected by fraudulent billing practices should contact TennCare member services and may also file complaints with the Tennessee Department of Health, which licenses and regulates healthcare providers throughout the state.
The TBI's Medicaid Fraud Control Division continues to investigate allegations of fraud within Tennessee's healthcare system as part of its mission to protect program integrity and safeguard taxpayer resources.
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