$30 Million Settlement reached in Whistleblower Case with Nationwide Contract Therapy Providers

Date Filed:

Thursday, May 10, 2012

Settlement Amount:

$30,000,000

A settlement has been reached in a whistleblower class action lawsuit brought against RehabCare Group Inc, RehabCare Group East Inc and Rehab Systems of Missouri and management company Health Systems Inc. They are accused of engaging in a kickback scheme related to the referral of nursing home business.

The whistleblower will receive $5.7 million as its share of the recovery in this case.

The initial whistleblower case was filed in May 2012. The government's complaint alleges that between March 1, 2006, and Dec. 31, 2011, RehabCare allegedly arranged with Rehab Systems of Missouri to obtain Rehab Systems of Missouri ’s contracts to provide therapy to patients residing in 60 nursing homes controlled by Rehab Systemsmajority-owner James Lincoln. In exchange for this stream of referrals, RehabCare allegedly paid Rehab Systems a $400,000 to $600,000 upfront payment and allowed Rehab Systems to retain a percentage of the revenue generated by each referral.

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