June 11, 2019
A physical therapy center, its owner, and four nursing facilities in the Chicago area have settled an intervened
qui tam suit that alleged that they upcoded patient Resource Utilization Group (RUG) scores, in violation of the False Claims Act, in order to increase Medicare payments.
Quality Therapy & Consultation Inc and owner
Francise Parise allegedly worked in conjunction with
Carlton at the Lake Inc,
Ridgeview Rehab and Nursing Center,
Lake Shore Healthcare and Rehabilitation Centre LLC, and
Balmoral Home Inc to manipulate the RUG scores, which indicate the level of skilled nursing care each patient requires. By upcoding the scores, the defendants allegedly claimed higher reimbursement rates from Medicare. As part of the settlement, each of the facilities will pay between $1 and $4 million, and Parise will pay $160,000, for a combined recovery of
$9.7 million.
USAO NDIL