Plano-Based Rehabilitation Company to Pay $6.1 Million for Kickback Scheme
Reliant Rehabilitation Holdings Inc., a national provider of rehabilitation therapy and related services, has agreed to pay $6.1 million to resolve allegations that it violated the False Claims Act by paying kickbacks to skilled nursing facilities and physicians in connection with care provided to Medicare beneficiaries.
The allegations, brought by Dr. Thomas Prose under the qui tam, or whistleblower, provisions of the False Claims Act, alleged that between April 1, 2013, and May 1, 2017, Reliant knowingly offered improper inducements to nursing homes in the form of Reliant-employed nurse practitioners who worked at client nursing homes without charge or for a nominal, below fair market fee in order to induce or reward nursing homes for contracting with Reliant to provide rehabilitation therapy for their residents.
The settlement between the United States and Reliant resolves this claim, as well as a separate allegation that Reliant violated the FCA by causing the submission of claims to Medicare that were tainted by improper contracts between Reliant and physicians working at skilled nursing facilities that offered the physicians above fair market compensation for supervising and collaborating with Reliant nurse practitioners in exchange for the facilities’ therapy business.
“Companies that work to secure patient referrals by providing kickbacks inject improper financial considerations into our healthcare system,” said United States Attorney Erin Nealy Cox for the Northern District of Texas. “Today’s settlement demonstrates our determination to thwart such improper inducements — whether they take the form of cash payments or free services.”
The case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the Northern District of Texas. Investigative assistance was provided by the U.S. Department of Health and Human Services Office of Inspector General.
Reliant Rehabilitation Holdings Inc. will pay approximately $6.1 million to settle the allegations. Dr. Thomas Prose, the whistleblower, will receive approximately $915,000 of the settlement proceeds.
The lawsuit is captioned United States ex rel. Prose v. Reliant Rehabilitation, Civil Action No. 3:16-CV-0707-D (N.D. Tex.).
Defendant/respondent: Reliant Rehabilitation Holdings Inc.
Exact criminal charges: Violating the False Claims Act (FCA) by paying kickbacks to skilled nursing facilities and physicians.
City and state: Plano, Texas
Exact date: Between April 1, 2013, and May 1, 2017
Sentence or outcome: Reliant Rehabilitation Holdings Inc. will pay $6.1 million to settle the allegations.
Dollar amounts: $6.1 million
Dr. Thomas Prose will receive approximately $915,000 of the settlement proceeds.
Key Facts
- State: Texas
- Category: White Collar Crime,Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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