A Clinton Township-based physical therapy company has agreed to pay nearly $5 million to settle a federal complaint over claims it fraudulently billed government programs, officials said.
The Team Rehabilitation Services LLC deal was announced Wednesday by Jerome Gorgon, U.S. Attorney for the Eastern District of Michigan.
"Improperly billing federal healthcare programs depletes valuable resources and erodes public trust," he said. "This case is further proof that this office will continue to aggressively root out fraud, waste, and abuse in our healthcare system."
Gorgon also said the settlement resolved a sealed lawsuit filed by a whistleblower under the False Claims Act. He said the whistleblower will receive $919,356 from Team Rehabilitation's settlement.
Team Rehabilitation Services officials were not immediately available for comment on Thursday.
The company has 136 clinics in Michigan, Illinois, Indiana, Wisconsin, and Georgia, according to its website.
Authorities alleged that Team Rehabilitation Services knowingly and improperly submitted false claims to Medicare, Medicaid, the U.S. Department of Veterans Affairs, and other federal healthcare programs from Jan. 1, 2018, through Dec. 31, 2024.
Investigators said the firm billed the programs for one-to-one services despite providing the physical therapy in group settings, where staff failed to maintain sufficient direct patient contact throughout sessions to appropriately charge for them.
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