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Chattanooga mental health facility resolves False Claims Act allegations

By Bryan Cohen | Feb 20, 2014

NASHVILLE, Tenn. (Legal Newsline) - Tennessee Attorney General Bob Cooper announced an $800,000 settlement on Tuesday with the operator of a Chattanooga-based mental health facility to resolve allegations of fraudulent billing practices.

The AIM Center Inc. allegedly violated the Tennessee Medicaid False Claims Act and the federal False Claims Act by knowingly submitting numerous false claims to the state's Medicaid program. The AIM Center allegedly overcharged for psychosocial rehabilitation services by submitting claims for services that were more lengthy and expensive than the services actually provided.

The AIM Center also allegedly concealed its obligations to return funds to the TennCare/Medicaid program that were improperly paid and retained as a result of double filling.

"Mental and behavioral health services are a vital component of the care provided to TennCare recipients," Cooper said. "This office will continue to pursue providers that improperly bill for these needed services."

Under the terms of the settlement, the AIM Center will pay $800,000 to compensate the state's Medicaid program for fund paid out of the program. The AIM Center also agreed to enter into a comprehensive, five-year corporate integrity agreement with the U.S. Department of Health and Human Services Office of Inspector General to make sure it continues to comply with federal healthcare benefit program requirements in the future.

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