Corporate Compliance

Whistleblower awarded $8.1 million from HealthSouth settlement

Compliance Monitor, February 9, 2005

An 83-year-old Reading, PA, man was awarded $8.1 million of a $325 million settlement from HealthSouth after suing the rehab provider under the federal False Claims Act (FCA), alleging the company was bilking the Medicare program, the Associated Press (AP) reported February 8.

James DeVage noticed in 1996 that HealthSouth continued to bill Medicare for treatments he was no longer receiving for a bad back, the AP reported. He said he tried to alert Medicare at the time, but they did not act on his complaint. It wasn't until DeVage and attorney Glenn D. Grossenbacher filed a suit under the FCA that Justice Department came onboard. HealthSouth reached a settlement with the government in January, the AP reported.

HealthSouth has been in the press a good deal lately as former chief executive officer Richard Scrushy is on trial for fraud and 18 former company executives have been indicted on related charges, USA Today reported February 4.

Most Popular