The two owners of Spectrum Care orchestrated and executed a scheme to defraud Medicare beginning in 2006 and continuing until their arrest in 2011.
Spectrum provided partial hospitalization program services, a form of intensive outpatient treatment for severe mental illness. As part of the fraud scheme, Spectrum billed Medicare $97 million for partial hospitalization program services for Medicare beneficiaries that did not qualify for or need the services, according to a Department of Justice report.
The owners of the group care homes involved in the scheme were paid kickbacks from the owners of Spectrum in exchange for delivering ineligible Medicare beneficiaries to Spectrum, and in some cases the patients received a portion of those kickbacks, according to the report.
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