Two physical therapy companies agreed to pay $2.78 million in a settlement after being accused of false Medicare billings, according to the U.S. Attorney’s Office for the District of Columbia.
The companies, Alliance Rehabilitation LLC and Active Physical Therapy Services LLC, submitted invoices to Medicare and TRICARE through a consolidated billing office in Fairfax. They are accused of seeking payment with claims that said a particular physical therapist had performed certain services when the therapist had no involvement in the particular services.
The investigators had not made a determination about the allegations. In a statement, Active Physical Therapy and Alliance Rehabilitation denied their billings were improper.
"The companies disputed the government’s interpretation of the billing regulations at issue," they said. "The companies agreed to settle this matter in order to avoid the expense of time-consuming litigation and because their patients and employees are best served by bringing this matter to resolution."
Two former Alliance employees filed a lawsuit using whistleblower provisions of the False Claims Act. Those employees will receive a more than $400,000 share of the settlement.
“These physical therapy clinics overbilled the federal programs that provide health care to senior citizens and military families,” said U.S. Attorney Ronald Machen Jr. in a statement. “If health care providers want to be paid for their services with taxpayer dollars, they have to play by the rules. Americans deserve to know that they are getting their money’s worth.”
The announcement came the same day
the spotlight was pointed toward Medicare billing
after the Centers for Medicare & Medicaid Services
released extensive data on physician Medicare billing.
That data shows the services and procedures provided to Medicare beneficiaries by physicians and other health care professionals.