Interface Rehab will pay $2 million to settle federal allegations of rehabilitation billing fraud, the Department of Justice announced on Friday.
This announcement comes one year after the DOJ announced a $16.7 million False Claims Act settlement with Longwood Management Corporation and 27 individual affiliated skilled nursing facilities over its rehabilitation services.
The $2 million settlement resolves Interface’s role in that alleged conduct, according to the press release.
“Interface pressured therapists to increase the amount of therapy provided to patients in order to meet pre-planned targets for Medicare revenue,” the government specifically asserted. “These alleged targets could only be achieved by billing for a high percentage of patients at the ‘Ultra High’ level without regard to patients’ individualized needs.”
The settlement covers false claims the government says were submitted between January 2006 and October 2014 at the following 11 facilities: Colonial Care Center, Covina Rehabilitation Center, Crenshaw Nursing Home, Green Acres Lodge, Imperial Care Center, Laurel Convalescent Hospital, Live Oak Rehabilitation Center, Longwood Manor Convalescent Hospital, Monterey Care Center, San Gabriel Convalescent Center and Whittier Pacific Care Center.
“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,” Tracy L. Wilkison, acting U.S. Attorney for the Central District of California, said in a statement announcing the settlement.
As part of the agreement, Interface Rehab did not admit fault and the federal government did not formally find the company liable for the alleged conduct.
Under the qui tam provisions of the False Claims Act, Keith Pennetti, a former director of rehab at Interface, will receive $360,000 of the settlement proceeds.
Interface Rehab did not return a request for comment as of Monday afternoon.
Companies featured in this article:
Department of Justice, Interface Rehab, Longwood Management Corporation