A Louisiana rehab hospital, its management company and a physician agreed to settle a Medicare fraud lawsuit and pay more than $1.7 million, ABC affiliate KATC reported April 24.
The settlement stems from a whistleblower complaint filed by two former employees, who will receive 20 percent of the settlement money. The complaint alleged the three parties — Lafayette (La.) Physical Rehabilitation Hospital, Lafayette-based Acadiana Management Group and Carolyn Smith, MD — submitted claims to Medicare for medically unnecessary inpatient rehabilitation services.
Between January 2010 and December 2016, Dr. Smith allegedly admitted some patients for whom inpatient rehab treatment was not medically reasonable or necessary and reportedly put improper pressure on patients to undergo inpatient treatment, according to the report.