Encore Rehabilitation Services LLC, Medicare Fraud, Michigan 2026

Grimy Times has learned that a Michigan-based rehabilitation services company, Encore Rehabilitation Services LLC, has agreed to pay $4.03 million to settle allegations of Medicare fraud. The company, based in Farmington Hills, Michigan, provides rehabilitation services to patients at over 600 healthcare facilities in over 30 states.

According to the settlement, Encore allegedly caused three Michigan skilled nursing facilities to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary or skilled. The services in question were allegedly provided at the Autumn Woods Healthcare Facility in Warren, Michigan, between September 1, 2012, and July 31, 2018; the Bay Shores Senior Care and Rehab Center in Bay City, Michigan, for the period from April 1, 2013, to April 6, 2017; and MediLodge of Yale in Yale, Michigan, for the period from October 1, 2010, to April 6, 2017.

“Billing federal healthcare programs for medically unnecessary rehabilitation services not only undermines the viability of those programs, it exploits our most vulnerable citizens,” said U.S. Attorney Matthew Schneider for the Eastern District of Michigan. “We are committed to working with our federal partners to protect both vulnerable Michiganders and these helpful healthcare programs.”

Encore’s agreement to pay $4.03 million resolves allegations that the company violated the False Claims Act by knowingly causing the submission of false claims to Medicare. The settlement also includes a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG) requiring, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks.

Contemporaneous with the civil settlement, Encore entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG) requiring, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The CIA requires training, auditing, and monitoring designed to address the conduct at issue in the case.

The settlement resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Linda Anderson, Reza Saffarian and Audrey Theile, and Adam LaFerriere, former Encore employees. The False Claims Act permits private parties to file suit on behalf of the United States and to share in any recovery.

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