Team Rehab Scam

⏱ 2 min read

Team Rehab Physical Therapy, a company operating 140 clinics across Michigan, Illinois, Indiana, Wisconsin, and Georgia, has been caught in a massive false billing scheme. From 2018 to 2024, the company knowingly submitted false claims to federal healthcare programs, including Medicare, Medicaid, and TRICARE, for one-to-one physical therapy services that were actually provided in group settings. This scam depleted valuable resources and eroded public trust in the healthcare system.

The scheme involved using time-based Current Procedural Terminology (CPT) codes to bill for services that were not provided as claimed. Team Rehab certified that the CPT codes they charged to federal healthcare programs were accurate, when in fact they were not. The company’s actions were a clear violation of the False Claims Act, which prohibits knowingly submitting false claims to the government for payment.

The settlement, announced by United States Attorney Jerome F. Gorgon Jr., requires Team Rehab to pay $4,969,494 to resolve the allegations. This case is a prime example of the DOJ’s efforts to root out fraud, waste, and abuse in the healthcare system. As U.S. Attorney Gorgon stated, ‘Improperly billing federal healthcare programs depletes valuable resources and erodes public trust.’

The investigation and settlement serve as a warning to healthcare providers that fraudulent billing practices will not be tolerated. The Defense Health Agency and other federal agencies are committed to protecting the integrity of federal healthcare programs and ensuring responsible stewardship of taxpayer dollars.