Health care companies agree to pay $2.7 million - WRCBtv.com | Chattanooga News, Weather & Sports

Health care companies agree to pay $2.7 million

CHATTANOOGA, Tenn. (AP) - A Chattanooga-based company that runs nursing homes in several states and 1 of its affiliated firms has agreed to pay $2.7 million plus interest to settle allegations that they overbilled Medicare and other government-run health care programs.

The U.S. Justice Department announced on Friday that Grace Healthcare LLC and Grace Ancillary Services stood accused of providing medically unnecessary physical, occupational and speech therapy so they could bill the government for the maximum amount.

The allegations stem from a lawsuit filed by a former employee who sued under the Whistleblower provisions of the False Claims Act. The lawsuit claimed the nursing home company pressured therapists to increase the amount of therapy for each patient for billing purposes and not for the patient's need.

The deal gives the whistleblower $405,000 of the settlement.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • NewsMore>>

  • Would you rather — think about vacation or a new smartphone?

    Would you rather — think about vacation or a new smartphone?

    Saturday, August 30 2014 12:07 PM EDT2014-08-30 16:07:09 GMT
    Before the latest video game or smartphone goes on sale, people line up for days (hello, iPhone 6!), anticipating its arrival. Often that leads to pushing, shoving, and sometimes punching — even when there is enough supply to go around. More
    Before the latest video game or smartphone goes on sale, people line up for days (hello, iPhone 6!), anticipating its arrival. Often that leads to pushing, shoving, and sometimes punching — even when there is enough supply to go around. More
  • Some Labor Day deals aren't such steals

    Some Labor Day deals aren't such steals

    Saturday, August 30 2014 11:56 AM EDT2014-08-30 15:56:25 GMT
    While retailers are offering deep discounts on summer inventory like grills and patio furniture, there are fewer bargains to be found with in-season items like fall clothes this Labor Day weekend.More
    While retailers are offering deep discounts on summer inventory like grills and patio furniture, there are fewer bargains to be found with in-season items like fall clothes this Labor Day weekend.More
  • Missouri Cop Resigns After Pointing Rifle at Ferguson Protesters

    Missouri Cop Resigns After Pointing Rifle at Ferguson Protesters

    Saturday, August 30 2014 11:46 AM EDT2014-08-30 15:46:54 GMT
    A suburban St. Louis cop who was suspended for pointing his semi-automatic rifle and threatening protesters in Ferguson, Missouri, has resigned, the police chief told the Associated Press. More
    A suburban St. Louis cop who was suspended for pointing his semi-automatic rifle and threatening protesters in Ferguson, Missouri, has resigned, the police chief told the Associated Press. More
Powered by WorldNow
Can't find what you're looking for?

WRCB-TV
900 Whitehall Road
Chattanooga, TN 37405
(423) 267-5412

WRCB Jobs EEO | FCC Public Files

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WRCB. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.