The false claims allegations concerned four Medicare patients who received care at the rehabilitation center between 2012 and 2014. According to court documents, the four patients in question were wrongfully admitted to the hospital with a diagnosis of generalized debility. The case was brought under the qui tam, or whistle-blower provision, of the False Claims Act by a former medical director at the hospital.
The $125,000 settlement includes legal expenses and the cost to investigate the allegations.
The hospital closed due to losses in patient volume and changes in Medicare reimbursement in 2014.
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