DC Clinics Settle False Medicare Claims for $2.8M; Whistleblower to Get $400K

Alliance Rehabilitation, LLC and Active Physical Therapy Services, LLC, along with three individuals associated with those businesses, have agreed to pay the federal government $2.78 million to settle allegations that the companies knowingly submitted or caused the submission of false claims to Medicare and the TRICARE health care program, the U.S. Attorney’s Office for the District of Columbia announced yesterday.

The settlement resolves allegations that the companies submitted claims which falsely represented that the physical therapy services being billed were either rendered or directly supervised by the physical therapist identified on the claims by his or her National Provider Identifier (NPI) number. In fact, the physical therapist identified on the claim had no involvement in the services rendered.  The settlement also resolves allegations that Alliance Rehabilitation, LLC, and Active Physical Therapy Services, LLC, sought payment from TRICARE for physical therapy services that were not provided by the physical therapist identified on the claim.

In addition to the False Claims Act settlement, the companies and the associated individuals have entered into a five-year Corporate Integrity Agreement with the U.S Department of Human Health and Services Office of Inspector General.  That agreement imposes integrity obligations on each of the entities and individuals and requires them, among other things, to retain an independent review organization to review their coding, billing, and claims submissions to Federal health care programs.

The lawsuit was originally filed by two former Alliance employees under the whistleblower provisions of the False Claims Act.  The Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  The whistleblowers in this case will receive $400,000 as their portion of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases andhow you can take action.