KHN Morning Briefing

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Kindred Healthcare Pays $125M To Settle Federal Overbilling Allegations

Authorities alleged that Kindred's therapy care unit RehabCare provided unnecessary therapy services to nursing home residents and overbilled Medicare.

The Wall Street Journal: Kindred Healthcare To Pay $125 Million To Settle U.S. Allegations Over Therapy Services
Kindred Healthcare Inc. agreed to pay $125 million to settle federal allegations it provided unnecessary therapy services to nursing-home patients as part of a scheme to overbill the federal Medicare program, according to the agreement finalized on Tuesday. Several nursing homes that hired Kindred’s therapy unit, RehabCare, to provide services to their residents separately agreed to pay the federal government about $8 million for their role in the alleged scheme. (Weaver, 1/12)

The Associated Press: Nursing Home Therapy Provider Settles Lawsuit For $125M
The U.S. attorney's office in Boston says RehabCare and four nursing facility operators submitted Medicare claims based on therapy services that were "unreasonable, unnecessary ... or that never occurred." The government's complaint alleges among other things that RehabCare reported that therapy had been provided to patients who were asleep or unable to benefit. (1/12)

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