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...
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