A therapy provider will pay $8.4 million after being accused of providing unnecessary services at skilled nursing facilities in order to increase their Medicare reimbursements.
The Department of Justice and U.S. Attorney’s Office for the District of New Jersey announced the settlement agreement with Select Medical Corporation and Encore GC Acquisition LLL on Friday.
The agreement resolves allegations that the contract rehabilitation therapy providers violated False Claims Act while they were contracted with 12 SNFs in New York and New Jersey. From Jan. 1, 2010 to March 31, 2016, Select Medical Rehabilitation Services Inc. allegedly encouraged and provided medically unnecessary, unreasonable and unskilled therapy services to residents without taking into account their individual clinical needs, federal officials said.
