Therapy Cos. Can’t Shake Whistleblower’s Medicare FCA Suit

Law360, New York (March 13, 2013, 4:34 PM EDT) -- A Missouri federal judge Wednesday refused to toss a whistleblower’s False Claim Act suit accusing physical therapy companies of exchanging kickbacks for referrals of Medicare business, saying a purported subcontracting arrangement was potentially unlawful.

U.S. District Judge Audrey G. Fleissig said the fact that Rehab Systems of Missouri LLC in 2006 stopped doing business after receiving a $600,000 payment from RehabCare Group Inc. in return for handing off responsibility for a Medicare contract didn’t mean it was unable to make referrals.

“The court does not perceive...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.