Corporate Compliance

Physiotherapy Associates will pay $16.6 Million in False Claims settlement

Compliance Monitor, November 21, 2007

Stryker Corporation and Physiotherapy Associates, its former outpatient therapy division, will pay the government $16.6 million to settle allegations that the company falsely billed Medicare, state Medicaid programs, and the Department of Defense's TRICARE program. The company allegedly falsely billed the charges as one on-one services and retained duplicate or excess payments it received from the programs.

The settlement occurred after two whistleblower suits were filed by two employees of Physiotherapy. As a result of the settlement, Physiotherapy agreed to enter into a corporate integrity agreement with the OIG and the DHHS.

"Today's settlement sends a strong signal that the government aggressively pursues those who engage in such conduct and makes them pay a steep price for their misdeeds," said Peter D. Keisler, Assistant Attorney General for the Civil Division.

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