Scripps will pay $1.5M to settle billing fraud case

San Diego-based Scripps Health has agreed to pay $1.5 million to settle allegations it violated the False Claims Act, according to the Department of Justice.

The settlement resolves allegations that Scripps billed Medicare and Tricare for services provided by physical therapists who did not have Medicare and Tricare billing privileges and were not supervised by an authorized provider.  

"Patients rightly expect qualified medical providers, or at least professionals working under the supervision of authorized providers," said Christian J. Schrank, special agent in charge for HHS' Office of Inspector General. "As charged, these billing practices cheat patients, taxpayers, and the Medicare program."  

The allegations against Scripps were originally brought under the qui tam, or whistle-blower, provisions of the False Claims Act by a former Scripps employee.

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