GREENSBORO – United States Attorney Sandra J. Hairston announced today that Compassionate Counseling Services, LLC (“Compassionate”), a behavioral health provider located in Rockingham, North Carolina, has agreed to pay $150,000 to settle civil claims under the Federal and North Carolina False Claims Acts concerning allegations that Compassionate caused the submission of false claims to the North Carolina Medicaid program.
Specifically, the United States and the State of North Carolina alleged that from June 7, 2016 through January 8, 2021, Compassionate circumvented North Carolina Medicaid requirements by improperly submitting claims for Diagnostic Assessments and also by improperly submitting claims following those Diagnostic Assessments. Under North Carolina Medicaid rules and regulations, Diagnostic Assessments serve as the initial order to establish medical necessity for certain treatment services: they must be signed and dated by certain professionals and serve as the initial order for services to take place.
The governments alleged that Compassionate employed only one such authorized professional to sign Diagnostic Assessments, who only worked on-site at Compassionate’s office location on the third Friday of each month and could not have provided the required signatures until then. The governments alleged that Compassionate circumvented the Diagnostic Assessment requirements by billing for, but failing to maintain, Diagnostic Assessments that were properly signed...
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