Physical Therapy Cos. Pay $30M To Settle FCA Kickback Suit

Law360, Los Angeles (January 17, 2014, 8:21 PM EST) -- Physical therapy providers will pay $30 million to settle a Missouri federal False Claims Act suit accusing them of exchanging kickbacks for referrals of nursing home business, the U.S. Department of Justice said Friday.

The whistleblower suit, launched in 2007 by physical therapy firm Health Dimensions Rehabilitation Inc. and later joined by the U.S. government, accused rival RehabCare Group Inc. of giving Rehab Systems of Missouri LLC a lump sum of $600,000 for handing off responsibility for a Medicare contract.

The suit said RehabCare also allegedly...
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