In Re Dr. Robert Tafel

CourtTexas Supreme Court
DecidedJune 19, 2026
Docket24-1062
StatusPublished
AuthorBusby

This text of In Re Dr. Robert Tafel (In Re Dr. Robert Tafel) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Dr. Robert Tafel, (Tex. 2026).

Opinions

Supreme Court of Texas ══════════ No. 24-1062 ══════════

In re Dr. Robert Tafel, et al., Relators

═══════════════════════════════════════ On Petition for Writ of Mandamus ═══════════════════════════════════════

Argued December 3, 2025

JUSTICE BUSBY delivered the opinion of the Court, in which Justice Lehrmann, Justice Devine, Justice Bland, Justice Young, and Justice Sullivan joined, and in which Chief Justice Blacklock, Justice Huddle, and Justice Hawkins joined except as to Part III.A.

JUSTICE BUSBY filed a concurring opinion.

JUSTICE BLAND filed a concurring opinion, in which Chief Justice Blacklock and Justice Young joined.

JUSTICE YOUNG and JUSTICE SULLIVAN filed a concurring opinion.

The Texas Health Care Program Fraud Prevention Act allows private persons to bring civil actions for fraud that harms the Texas Medicaid program. When an action leads to a recovery for the State, the private person bringing the action—the qui tam relator—receives a portion of the proceeds in return for their efforts. Here, the qui tam relator died while the Medicaid fraud suit was pending, and this mandamus petition asks us to decide whether the pending suit must therefore be dismissed. We hold that pending qui tam claims under the Act survive the relator’s death. Although prosecuted by a private party, these claims establish liabilities to the State for benefits wrongfully obtained from its health care programs. Because claims under the Act are on behalf of the State, they do not extinguish upon the death of the private relator prosecuting them. We are also asked to decide whether this suit is prevented from proceeding by another pending qui tam action or the public disclosure of Medicaid fraud allegations in that action. We hold the suit can proceed. The defendants failed to establish conclusively that this suit is based on the facts underlying the separate pending action, and that action was not a prior public disclosure of the relevant fraud allegations. Finally, we hold that the doctrine of dominant jurisdiction does not require abatement of this suit. We therefore deny the petition.

BACKGROUND

A. Dr. Ludlow sues Bear Creek alleging a Medicaid fraud scheme he discovered in 2019.

Dr. Scott Ludlow filed the suit underlying this mandamus proceeding in August 2021. The defendants are Dr. Robert Tafel, a group of Dallas-area dental practices operating under the name Bear Creek Family Dentistry, and a related management company and professional associations (collectively “Bear Creek”). Dr. Ludlow began working for Bear Creek as a dentist in 2011 and was ultimately promoted in February 2019 to become its Chief

2 Dental Officer. Before that promotion, he spent his time at Bear Creek treating patients and supporting other pediatric dentists. After the promotion, Dr. Ludlow asserted, he took on administrative duties that included audit reviews, reviewing internal charts and conducting peer reviews of other Bear Creek dentists, and assisting in compliance matters. As his administrative responsibilities as Chief Dental Officer expanded after February 2019, Dr. Ludlow spent more time on clinical compliance issues and performing chart reviews of Bear Creek dentists. This is when Dr. Ludlow claims he learned of Bear Creek’s alleged fraud, waste, and abuse affecting the Texas Medicaid program. According to Dr. Ludlow, individual Bear Creek dentists performed unnecessary treatments on patients as part of a concerted scheme directed by Dr. Tafel for which Bear Creek sought reimbursement from the Texas Medicaid program: The primary focus of Dr. Tafel and his management team was to pressure dentists to excessively utilize dental procedures under certain procedures codes established by the American Dental Association (“ADA Codes”). The main codes Dr. Tafel pressured dentists to use were ADA Codes for tooth fillings or “Class 1 Fillings.” The ADA Codes for such fillings were D2391 and D2392. In face-to-face “production meetings,” Dr. Tafel or someone from the management team would pressure and intimidate dentists that he felt were under-utilizing these ADA Codes. (Cleaned up.) Dr. Ludlow also claimed that Dr. Tafel hired new dentists with student-loan debt that he compensated based on collections, making them more likely to follow these instructions. Dr. Ludlow alleged that this scheme resulted in Bear Creek billing the Texas Medicaid program for fillings that were performed but not medically

3 necessary and later billing to redo those fillings, which had been performed in a hurried manner with low-quality materials.

B. Bear Creek seeks dismissal based on a 2012 Medicaid fraud action by another qui tam relator and on Dr. Ludlow’s death.

Bear Creek filed an amended plea to the jurisdiction, arguing that the same allegations against it were already being litigated in a separate pending action in Travis County. Thus, according to Bear Creek, Dr. Ludlow’s suit could not proceed under provisions of the Texas Health Care Program Fraud Prevention Act addressing earlier-filed actions and publicly disclosed allegations. Bear Creek alternatively moved to abate and argued that the Travis County court presiding over the separate action had dominant jurisdiction over Dr. Ludlow’s suit. The separate pending action was a Medicaid fraud suit that Joshua LaFountain brought nine years earlier against many of the Bear Creek parties. LaFountain filed his suit in 2012 in Travis County (Cause No. D-1-GV-12-000277), and he included claims against an affiliate of Xerox Corporation that processed the reimbursement requests. State v. Ellis, 681 S.W.3d 501, 504, 506 (Tex. App.—Austin 2023, no pet.). LaFountain alleged a similar scheme that Dr. Tafel directed dentists to perform invasive dental treatments regardless of medical necessity, especially pulpotomies, stainless steel crowns, and deep cleaning or “scaling,” resulting in Bear Creek dental practices becoming state leaders in amounts billed to Medicaid for these procedures. Like Dr. Ludlow, LaFountain alleged that Bear Creek dentists were receptive to these instructions because they were in debt

4 following dental school and being paid by Bear Creek based on a percentage of collections. LaFountain’s action was one of three filed under the Act in early 2012 against Xerox Corporation or its affiliates concerning alleged Medicaid fraud in the provision of dental and orthodontic services and related payment processing. Id. at 506. The State eventually filed its own action against Xerox in 2014, alleging that it fraudulently operated payment review processes while serving as the administrator for the Texas Medicaid program. Id. at 506-07. In February 2019—the same month Dr. Ludlow was promoted as Bear Creek’s Chief Dental Officer— Xerox Corporation and its subsidiaries agreed to a $235.9 million settlement to resolve the State’s suit. Following this settlement, LaFountain intervened in the State’s action and claimed that he was entitled to a portion of the State’s recovery because the State’s claims against Xerox were based on allegations in his 2012 Travis County action. Id. at 507. 1 In the Travis County action, the trial court granted summary judgment against LaFountain after striking his experts as

1 The trial court ultimately awarded LaFountain a portion of the State’s

recovery against Xerox after denying the State’s motion for summary judgment, which argued that LaFountain’s Travis County action was barred by the prior public disclosure of similar allegations against Xerox in news reports and legislative hearings, among other sources. The Fifteenth Court of Appeals recently reversed the trial court’s award of a share of the Xerox proceeds to LaFountain and rendered judgment for the State on LaFountain’s claim in intervention. State v. Alvarez, ___ S.W.3d ___, 2026 WL 942691 (Tex. App.—15th Dist. Apr. 7, 2026, no pet. h.).

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