LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that Lafayette Physical Rehabilitation Hospital and its management company, Acadiana Management Group, LLC have agreed to pay $1.2 million, and Dr. Carolyn Smith agreed to pay $575,000 to resolve allegations that they violated the False Claims Act by submitting claims to Medicare for medically unnecessary inpatient rehabilitation services.
“This settlement demonstrates our commitment to ensuring that those who participate in federal healthcare programs follow the rules,” said U.S. Attorney Brandon B. Brown. “Billing for non-covered rehabilitation hospital stays results in a misuse of federal dollars. The financial viability of our Medicare program must be protected for current and future generations.”
The United States alleged that from January 1, 2010 through December 31, 2016, Dr. Smith admitted certain patients to Lafayette Physical Rehabilitation Hospital for whom inpatient rehabilitation treatment was not medically reasonable or necessary. Dr. Smith repeatedly admitted these patients, often by putting improper pressure on the patients, and falsely certified that the patients met the applicable criteria for inpatient admission. However, the patients did not satisfy the criteria and did not need impatient rehabilitation services.
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