LEOMINSTER — The state attorney general's office announced Tuesday it has reached a $2.6 million settlement with a Leominster-based ambulance company.

MedStar Ambulance Inc., along with its parent corporation and affiliates, settled with the office of Attorney General Andrea Campbell to resolve allegations that the company submitted false claims to MassHealth, the state’s Medicaid program.

MedStar provides services to several Central and Western Massachusetts cities and towns, including Worcester, Fitchburg and Leominster.

Campbell's office contended that the company knowingly submitted false claims to MassHealth for emergency ambulance services when only a less expensive level of service was provided.

Additionally, the office alleged that 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.

Campbell's office also alleges MedStar did not follow regulations because it provided nonemergency ambulance services or wheelchair van services without appropriate medical necessity documentation, and provided MassHealth with claims for services that did not show the appropriate documentation.

In addition to paying back $2.6 million to MassHealth,...

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