A settlement has been reached to resolve False Claims Act allegations against Reliant Rehabilitation Holdings Inc.
The allegations arose from a lawsuit that claimed Reliant Rehabilitation Holdings Inc (Reliant) paid kickbacks to skilled nursing facilities and physicians in connection with care provided to Medicare beneficiaries as a way of improperly promoting Reliant’s rehabilitation therapy business.
According to the government, allegedly between April 1, 2013, and May 1, 2017, the Company knowingly offered improper inducements, in the form of Reliant-employed nurse practitioners who worked at client nursing homes without charge or for a nominal, below fair market fee in order to induce or reward nursing homes for contracting with Reliant to provide rehabilitation therapy for their residents. In addition, allegedly, Reliant violated the FCA by causing the submission of claims to Medicare that were tainted by improper contracts between Reliant and physicians working at skilled nursing facilities that offered the physicians above fair market compensation for supervising and collaborating with Reliant nurse practitioners in exchange for the facilities’ therapy business.
“Paying illegal remuneration to nursing homes and doctors to increase the bottom line – as contended by the government in this case – is unacceptable as it too often sacrifices the best interests of patients to profit-making schemes,” said CJ Porter, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Patients and taxpayers deserve better.”
The whistleblower, Dr. Thomas Prose, will receive approximately $915,000 as part of the settlement.
