A Placentia-based company has agreed to pay $2 million to resolve a federal complaint that the U.S. Attorney’s Office said was triggered by Medicare claims for rehabilitation therapy that was considered unreasonable or unnecessary, officials said Friday.
The settlement covers claims made from Jan. 1, 2006, through Oct. 10, 2014, from Interface Rehab for services at 11 skilled nursing facilities in the Southland.
In July of last year, prosecutors announced that Longwood Management Corporation and 27 skilled nursing facilities agreed to pay $16.7 million to resolve False Claims Act allegations for therapy services deemed unreasonable or unnecessary. The settlement revealed on Friday resolves Interface’s role in it.
“The claims that patients required ultra-high levels of care appear to be driven solely by a desire to send ultra-high bills to Medicare,” said Acting Central District of California U.S. Attorney Tracy L. Wilkison. “This case is further proof that the government will vigorously pursue those who attempt to cheat the taxpayer-funded system that pays for medical care for millions of Americans, sometimes with the help of whisteblowers who shine a light on fraud.”
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