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Physical therapy firm to pay $4M to settle allegations it made false claims for payment

The company allegedly submitted false claims for outpatient services over a period of five years.
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Physical therapy

A physical therapy company has agreed a settlement with state officials that will see it pay out $4 million to resolve allegations it submitted false claims for outpatient services.

The U.S. Attorney's Office of Minnesota announced Thursday it had agreed a settlement with RehabAuthority, LLC relating to allegations it submitted fraudulent Medicare claims for outpatient therapy services between 2014 and 2018.

According to a news release, the company – which has clinics in Minnesota, North Dakota, Idaho, and Wyoming – "improperly billed" Medicare Part B, Minnesota Medical Assistance (MA), TRICARE and the Veterans Health Administration for "one-on-one outpatient physical therapy, including therapeutic exercises, manual therapy, ultrasounds, therapeutic activities, and gait training."

But, according to the U.S. Attorney's Office, the company billed the government for one-on-one care with physical therapists, but "did not provide it when it overbooked government beneficiaries for certain outpatient physical therapy services."

The USAO-MN says the settlement resolves claims that were brought under the whistleblower provisions of the False Claims Act.

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