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Physiotherapy Fraud

Boston, MA: (Nov-15-07) The Justice Department filed charges against Stryker Corp., alleging that a former outpatient therapy subsidiary fraudulently billed Medicare and other government health care programs. The suit, filed by government investigators in US District Court in Boston, claimed that Physiotherapy falsely billed Medicare, Medicaid and a Department of Defense health care program for services not covered by the programs. Sources revealed that the case stemmed from two whistleblower lawsuits by former Physiotherapy employees.

As part of a settlement reached, Stryker Corp. has agreed to pay $16.6 million to resolve allegations. Records state that Physiotherapy, of Memphis, TN, recently was acquired by a pair of private equity firms. The former Physiotherapy employees stand to receive nearly $3 million from the settlement. [M LIVE: MEDICAID FRAUD]

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Published on Nov-17-07


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