BOSTON — Attorney General Andrea Joy Campbell and her office have reached a $2.6 million settlement with MedStar Ambulance, Inc., along with its parent corporation and affiliates, to resolve allegations that the company submitted false claims to MassHealth, the state’s Medicaid program.

Based in Leominster, MedStar provides services in multiple cities and towns in Central and Western Massachusetts, including Chicopee, Fitchburg, Leominster, Northampton and Worcester.

The AG’s Office contends that MedStar Ambulance, Inc., and its parent corporation, Critical Systems, Inc., knowingly submitted false claims to MassHealth for emergency ambulance services, when only a less expensive non-emergency level of service was provided.

Additionally, the Office alleges MedStar did not follow MassHealth regulations because it provided non-emergency ambulance services or wheelchair van services without appropriate medical necessity documentation. Furthermore, the Office alleges that MedStar submitted claims to MassHealth for services where they had not actually shown the appropriate medical necessity documentation to the authorized provider who was signing it.

“The MassHealth program only works when providers play by the rules — and my office will continue to hold those who don’t accountable,” Campbell said. “By doing so, we can and will protect the integrity of MassHealth and ensure its purpose to provide crucial health care support for the most vulnerable remains intact.”

Under the terms...

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