Lafayette (La.) Physical Rehabilitation Hospital and its parent company, Acadiana Management Group, have agreed to pay $1.2 million, and physician Carolyn Smith, MD, has agreed to pay $575,000 to settle false claims allegations, according to an April 24 report from ABC affiliate KATC.
According to the U.S. Attorney's Office, Dr. Smith allegedly admitted patients to the rehabilitation hospital who did not need inpatient rehabilitation treatment and falsely certified they met criteria for inpatient admission from January 1, 2010, through December 31, 2016.
The alleged false claims to Medicare were revealed by two whistleblowers who were previously employed by the hospital. Through the qui tam, or whistleblower, provisions of the False Claims Act, these individuals are eligible to receive a portion of the recovery, the report said.