Health Management Associates Inc. (and 14 hospitals it previously owned), along with Community Health Systems and North Texas Medical Center, agreed to collectively pay $15.69 million to settle whistleblower charges they violated the False Claims Act by seeking and receiving Medicare reimbursement for Intensive Outpatient Psychotherapy (IOP) services that were not medically reasonable or necessary. The IOP services in question were typically performed on the providers’ behalf by Louisiana-based Allegiance Health Management. The allegations were first raised in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. The unidentified whistleblower will receive a whistleblower award of $2,667,300. Whistleblower Insider
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