Team Rehab Physical Therapy, a Michigan-based provider with 14 clinics across the state, has agreed to pay $5 million to resolve allegations that it submitted false claims to Medicare, Medicaid, and TRICARE for services that were medically unnecessary or never performed.
The settlement, announced by the U.S. Attorney's Office for the Eastern District of Michigan, resolves a whistleblower lawsuit filed in 2022 by a former Team Rehab billing manager. The government alleged that between 2018 and 2023, the company routinely billed for one-on-one therapy sessions when group therapy was provided, and for services exceeding what was medically necessary.
Team Rehab denied any wrongdoing but agreed to settle to avoid the cost and uncertainty of litigation. 'We are committed to compliance and have already implemented enhanced auditing procedures,' the company said in a statement.
Whistleblower receives $875,000
The former employee who filed the qui tam lawsuit will receive approximately $875,000 as her share of the settlement. 'This case demonstrates that individuals with inside knowledge play a crucial role in protecting federal healthcare programs,' said U.S. Attorney Dawn Ison.
As part of the settlement, Team Rehab entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services, requiring independent audits and compliance training.
This case demonstrates that individuals with inside knowledge play a crucial role in protecting federal healthcare programs from fraud.
The government's investigation is ongoing regarding individual therapists involved in the scheme. No criminal charges have been filed to date.
