Three New York rehabilitation companies have agreed to pay $9 million to settle allegations that they submitted false claims to Medicare and Medicaid for unnecessary or undocumented therapy services.
U.S. Attorney Michael DiGiacomo announced the settlement involving Safire Rehabilitation of Northtowns, LLC, Safire Rehabilitation of Southtowns, LLC, and Williamsville Suburban, LLC.
Federal prosecutors alleged that between January 2015 and October 2019, Safire submitted claims for skilled rehabilitation therapy services that were not medically reasonable or necessary, were not supported by medical records, were not documented as provided, or were not provided at all.
According to the U.S. Attorney’s Office, Safire allegedly scheduled therapy and established treatment goals based on insurance reimbursement policies rather than patients’ medical needs, resulting in some Medicare and Medicaid beneficiaries being scheduled for more therapy than necessary.
The government also alleged that therapists were pressured to provide treatment despite recommending against it and that residents were pressured to attend therapy sessions after repeatedly refusing to participate.
Prosecutors further alleged that therapy referrals and medical records were manufactured or altered to justify unnecessary treatment.
“Medicare and Medicaid fraud drains taxpayer funds and weakens these vital government programs,” DiGiacomo said. “This settlement reinforces our commitment to safeguarding federal...
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