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Michigan physician group to pay $9.5M to resolve False Claims Act allegations

By Chelsey Ledue

The Visiting Physicians Association, based in Farmington Hills, Mich., will pay $9.5 million to settle allegations that it submitted false claims to Medicare, TRICARE and the Michigan Medicaid program.

The Michigan professional corporation has provided home health services at various times in Michigan, Ohio, Georgia and Wisconsin.

According to the Justice Department, the agreement settles allegations that the VPA submitted claims to Medicare, TRICARE and Michigan Medicaid for unnecessary home visits and care plan oversight services, unnecessary tests and procedures and more complex evaluation and management services than services actually provided.

"The Justice Department will continue to work with our federal and state partners to ensure that taxpayer dollars are spent on healthcare services for patients, not wasted on fraud and abuse," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice.

The settlement resolves four lawsuits filed by private plaintiffs under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file on the government’s behalf and share in any recovery. The four plaintiffs will collectively receive approximately $1.7 million.

"This settlement furthers the public interest and protects the strength and soundness of the Medicare program while ensuring that Medicare beneficiaries receive appropriate care," said Carter Stewart, U.S. Attorney for the Southern District of Ohio.