WASHINGTON (Legal Newsline) — After facing allegations of submitting false Medicare claims, two consulting companies and nine of its affiliated skilled nursing facilities in Florida and Alabama have agreed to a $10 million settlement with the U.S. Department of Justice (DOJ).
Southern SNF Management Inc.; Rehab Services in Motion, doing business as Dynamic Rehab; and nine affiliates have reached a settlement over charges of False Claims Act violations, the DOJ said in a July 18 press release.
Between 2009 and 2013, Southern SNF Dynamic Rehab and the nine facilities established policies that encouraged "medically unreasonable" and unnecessary therapy, which resulted in submitting false claims, according to the DOJ.
“Such conduct is especially unacceptable when it seeks to take advantage of older Americans, who are some of the most vulnerable members of our community," Chad Readler, DOJ Civil Division acting attorney general, said in a statement.
The DOJ's charges against the companies stem from a whistleblower lawsuit alleging False Claims Act violations. The whistleblowers will receive $2 million in recovered funds, according to the DOJ.