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RehabCare settles FCA allegations for $30 Million

Next time you wonder how serious the government is about anti-kickback law, think about the latest False Claims Act settlement of $30 Million. This settlement was part of the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, partnering Department of Justice and Health and Human Services.

While not admitting guilt, RehabCare Group settled an alleged kickback scheme concerning referral of nursing home business. Beginning in March, 2006 until December, 2011, RehabCare allegedly arranged with Rehab Systems, a nursing home consisting of 60 nursing homes, to obtain contracts to provide therapy to patients residing in the nursing homes. Allegedly in exchange for the contracts, RehabCare paid an upfront payment to Rehab Systems, plus allowed Rehab Systems to retain a percentage of revenue generated by each referral. The whistleblower, Health Dimensions Rehabilitation, will receive $700,000 as its share of the recovery.

By Denise Bloch

Denise Bloch

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