Physician Law Blog
June 17, 2015
False Claims Act Update - 16 Hospitals to Pay $15.69M Related to Medically Unnecessary Psychotherapy Services
On May 7, 2015, the Department of Justice reported settlement with 16 separate hospitals for medically unnecessary or unreasonable psychotherapy services. The claims under scrutiny were Intensive Outpatient Psychotherapy (IOP) services, which represent a variety of treatment methods. The services, while billed to Medicare by the providers, were performed on the providers’ behalf by Allegiance health Management, a post-acute healthcare management company.