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Shreveport Healthcare Provider Settles False Claims Act Allegations for $3.5 Million
A Shreveport community mental health center, Westwood Mental Health LLC, and its parent company, MedSouth LLC, have agreed to pay $3.5 million to settle False Claims Act and Anti-Kickback Statute allegations. The settlement, announced by U.S. Attorney Stephanie A. Finley, stems from Westwood’s self-disclosure to the Office of Inspector General of the Department of Health and Human Services (HHS OIG) through the OIG’s Provider Self-Disclosure Protocol.
According to the self-disclosure and the investigation that followed, from 2006 through 2009, the United States alleged that Westwood falsified patient records, billed for services not medically necessary, billed for services that were not rendered, provided bribes to Medicare beneficiaries who did not qualify for partial hospitalization services and provided bribes and/or kickbacks to employees to further or conceal the fraud.
The settlement demonstrates the power of collaboration between law enforcement and the healthcare community, Finley stated. When Westwood discovered the problems, it brought the matter to the attention of the HHS Office of Inspector General, and in doing so avoided the costs associated with a protracted investigation and the risk of potential fines under the False Claims Act.
Healthcare fraud poses a serious risk to the integrity of our healthcare system, and the U.S. Attorney’s Office remains committed to aggressively pursuing healthcare providers who seek public funds through unlawful means. The United States encourages all healthcare providers to self-disclose any known violations that have resulted in the submission of improper claims to federal healthcare programs.
This case was handled by the Department of Health and Human Services Office of Inspector General and the U.S. Attorney’s Office for the Western District of Louisiana. Assistant U.S. Attorney Karen J. King represented the United States.
The claims resolved by this settlement are allegations only and there has been no determination of liability. The settlement is a testament to the importance of cooperation and accountability in the healthcare industry.
Defendant: Westwood Mental Health LLC, MedSouth LLC
Criminal Charges: Falsified patient records, billed for services not medically necessary, billed for services that were not rendered, provided bribes to Medicare beneficiaries who did not qualify for partial hospitalization services, provided bribes and/or kickbacks to employees to further or conceal the fraud
City, State: Shreveport, Louisiana
Exact Date: 2009 ( timeframe 2006-2009)
Sentence or Outcome: Westwood Mental Health LLC and its parent company, MedSouth LLC, agreed to pay $3.5 million to settle False Claims Act and Anti-Kickback Statute allegations
Dollar Amount: $3.5 million
Key Facts
- State: Louisiana
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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