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Rehabcare Settlement Agreement

RehabCare Settlement Agreement: What You Need to Know

Rehabilitation services are a crucial aspect of healthcare, particularly for individuals recovering from injuries or illnesses. However, there have been instances where healthcare providers have engaged in fraudulent activities, jeopardizing the quality of care provided to patients. The RehabCare settlement agreement is one such instance, and in this article, we shall delve into the settlement and its implications.

What is the RehabCare Settlement Agreement?

RehabCare is a rehabilitation services provider that operates in a variety of settings, including nursing homes, hospitals, and outpatient clinics. In 2013, RehabCare was investigated by the Department of Justice (DOJ) for engaging in fraudulent activities. The DOJ found that RehabCare had engaged in activities such as:

– Billing for services that were not provided

– Overcharging for services that were provided

– Providing unnecessary rehabilitation services

– Misrepresenting the amount of therapy provided to patients

The DOJ`s investigation revealed that RehabCare had been engaging in these activities for at least 10 years, resulting in millions of dollars in fraudulent Medicare and Medicaid claims.

In 2016, RehabCare agreed to settle the case for $125 million, of which $30 million would be paid to the whistleblower who had alerted the authorities to the fraudulent activities. The settlement also required RehabCare to enter into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services (HHS), requiring the company to implement measures to prevent future fraudulent activities.

What are the Implications of the RehabCare Settlement Agreement?

The RehabCare settlement agreement is significant for several reasons. Firstly, it highlights the importance of whistleblowers in exposing fraudulent activities in healthcare. The whistleblower in this case, a former RehabCare employee, played a crucial role in bringing the fraudulent activities to the attention of the authorities, resulting in the settlement agreement. Whistleblowers are protected under the False Claims Act, which allows them to file lawsuits on behalf of the government and receive a portion of any settlement or judgment resulting from the lawsuit.

Secondly, the settlement agreement serves as a warning to other rehabilitation services providers engaging in similar activities. The DOJ has made it clear that it will not hesitate to investigate and prosecute healthcare providers engaging in fraudulent activities, and the RehabCare settlement agreement shows that such activities can result in significant financial penalties and legal consequences.

Finally, the settlement agreement highlights the importance of implementing measures to prevent fraudulent activities in healthcare. Under the CIA, RehabCare is required to implement measures such as:

– Hiring an independent review organization to review the company`s claims and billing practices

– Creating a compliance program to ensure adherence to federal and state healthcare laws

– Conducting regular training for employees to ensure compliance with healthcare laws

Conclusion

The RehabCare settlement agreement serves as a reminder of the importance of providing quality healthcare services to patients and the consequences of engaging in fraudulent activities. Healthcare providers should implement measures to prevent fraudulent activities and ensure compliance with federal and state healthcare laws. Whistleblowers play a crucial role in exposing fraudulent activities, and healthcare providers should encourage a culture of transparency and accountability to prevent such activities from occurring in the first place.

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