Firm News

HealthSouth to Settle Medicare Fraud Case for $325 million
December 31, 2004

Birmingham, AL based HealthSouth Corp. has reached an agreement to pay $325 million to settle charges that it overbilled Medicare. HealthSouth is the largest provider of medical rehabilitation services in the United States. The settlement is tied to a 1998 lawsuit filed under the False Claims Act. Attorneys at Shelby Roden served as Plaintiffs’ Counsel in the case.

The settlement stemmed from allegations that from 1996 to 2002, HealthSouth routinely submitted Medicare claims without proper plans for patient care from physicians. Over 5,000 Medicare claims at 60 outpatient facilities were reviewed. There were cited problems in Colorado, Arizona, California, and Illinois.

Of the $325 million, the majority will settle allegations of improper reimbursement claims for outpatient physical therapy services. Another significant portion will settle claims that the company sought improper reimbursement from Medicare used for lavish entertainment and other improper things.