Gate City Transportation, Inc., Health Care Fraud, North Carolina 2018

GREENSBORO, N.C. – A local medical transportation provider’s scheme to defraud Medicaid has resulted in a hefty price tag, with the company ordered to pay over 5 million dollars in restitution. According to court records, Gate City Transportation, Inc. misrepresented their services on reimbursement applications from November 2010 until February 2015, stealing over five million dollars from the Medicaid program.

The investigation revealed that Gate City Transportation deliberately submitted false claims in order to receive higher reimbursements than were appropriate by coding their services as if they were an ambulance provider despite not being authorized to do so. The company pleaded guilty to one count of health care fraud in September 2018, and was sentenced on August 15, 2019, and ordered to pay restitution.

A total of $5,553,486.62 will be paid to the victim which includes principal of $5,245,640.02 plus interest of $307,846.60. The funds were obtained through seizure and forfeiture of Gate City Transportation assets. “Securing this restitution means that millions across the state of North Carolina will be able to get the healthcare they need,” said U.S. Attorney Sandra Hairston. “I am very happy that we are able to return the money that was stolen and thankful to the agencies that worked so hard to secure justice in this case.”

The 2018 criminal case was investigated by the Internal Revenue Service-Criminal Investigations, the U.S. Department of Health and Human Services, and the North Carolina Attorney General’s Medicaid Investigations Unit. Gate City Transportation, Inc. is a Greensboro-based medical transport company.

The case against Gate City Transportation, Inc. serves as a reminder of the importance of holding companies accountable for their actions. By prioritizing transparency and accountability, we can work towards creating a more just and equitable society. As the investigation revealed, Gate City Transportation’s actions had serious consequences for the Medicaid program and the people it serves.

The restitution ordered in this case is a significant step towards making things right. The total of $5,553,486.62 represents a substantial amount of money that will be used to provide healthcare services to those who need it most. It is a testament to the power of collaboration and determination in the pursuit of justice.

In conclusion, the case against Gate City Transportation, Inc. is a prime example of the consequences of corporate malfeasance. By holding companies accountable, we can work towards creating a safer and more just society for all.

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