SEATTLE — A former Washington state residential care facility has been ordered to pay $2.79 million after a lawsuit filed by the state's attorney general alleges the company submitted close to $1 million in false Medicaid claims.
According to the Washington State Attorney General's Office, a King County Superior Court found Relationship Toward Self-Discovery (RTS) and two of its executives liable for violating the state's Medicaid False Claims Act. RTS allegedly paid its employees who were required to stay overnight to care for the facility's residents overtime instead of the "sleep rate" required by state law. However, the company submitted claims and received more than $900,000 in Medicaid reimbursement for paying "sleep hours" to its employees, the Attorney General's Office said.
“Medicaid dollars are a precious resource meant to care for the most vulnerable among us,” Washington Attorney General Bob Ferguson said in a statement. “This result will help future efforts to fight fraud and ensure Medicaid funds go toward Washingtonians’ health care needs.”
The company also will pay a $5,500 civil penalty as well as state cost and fees, according to Ferguson's office. The attorney general's lawsuit stemmed from a whistleblower who worked as a former bookkeeper for RTS and reported the Medicaid activity.