Corporate Compliance

Mississippi rehab providers charged with Medicare fraud

Compliance Monitor, May 11, 2005

The federal government this week charged two unaffiliated rehab clinics in Mississippi with healthcare fraud, citing more than $8 million in unlawful Medicare claims between them, the Associated Press (AP) reported May 9.

The FBI on Monday arrested seven people at the two establishments--Central Mississippi Physical Medicine, Inc., (CMPM) and The Rehab Center, Inc.--the AP reported. According to federal agents, the charges stem from billed treatments that were either never performed or performed by unlicensed employees.

Not only were the treatments improper, but the bills sent up red flags for investigators, Acting FBI special agent William V. Jenkins told the AP. "Said claims were also billed in excessive units for each therapy session spent with a patient," he said.

Jenkins said CMPM submitted $6.2 million in fraudulent claims between September 2002 and September 2004, the AP reported. The Rehab Center allegedly filed $1.9 million in bad bills from December 2001 to January 2005.

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