By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    learn to recognize and treat yeast infections
    Most Commonly Asked Questions About Yeast Infections
    November 17, 2021
    Advanced lung cancer diagnosis systems used by doctors
    Advanced Lung Cancer Diagnosis Systems Used by Doctors
    March 6, 2022
    The Top Benefits of a Wearable Blood Pressure Monitor Watch
    The Top Benefits of a Wearable Blood Pressure Monitor Watch
    June 13, 2022
    Latest News
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Revenue Cycle News
    Telemedicine’s Impact on Value-based Care
    March 2, 2016
    Hard choices on Health Care at Home and Away
    August 23, 2017
    Journalists Decry WH Decision to Pull Physicians’ Database
    September 16, 2011
    Latest News
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
    Top HIPAA-Compliant Messaging Apps for Healthcare Teams
    June 25, 2025
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Kindred Healthcare Inc. To Pay $125 Million to Settle Allegations of False Claims
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Global Healthcare > Kindred Healthcare Inc. To Pay $125 Million to Settle Allegations of False Claims
Global HealthcareHealth ReformHome HealthHospital AdministrationMedical EthicsPolicy & LawPublic Health

Kindred Healthcare Inc. To Pay $125 Million to Settle Allegations of False Claims

Jennifer Warren
Jennifer Warren
Share
6 Min Read
SHARE

Kindred Healthcare Inc. (Kindred), the largest skilled therapy provider in the nation, has agreed to pay $125 million to settle allegations that it violated the False Claims Act (FCA). Kindred is accused of billing Medicare for therapy services that were unnecessary or never occurred, the U.S. Department of Justice (DOJ) announced January 12, 2016. Knowingly Violating The False Claims Act Alleged. Kindred Healthcare Inc. (Kindred), the largest skilled therapy provider in the nation, has agreed to pay $125 million to settle allegations that it violated the False Claims Act (FCA). Kindred is accused of billing Medicare for therapy services that were unnecessary or never occurred, the U.S. Department of Justice (DOJ) announced January 12, 2016. Knowingly Violating The False Claims Act Alleged. According to the DOJ, Kindred and its subsidiary RehabCare, allegedly violated the FCA by knowingly causing skilled nursing facilities (SNFs) to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary and skilled, or that never occurred. The alleged overbilling occurred from January 2009 to September 2013. “Medicare beneficiaries are entitled to receive care that is dictated by their clinical needs rather than the fiscal interests of healthcare providers,” Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said in a statement. According to the DOJ, RehabCare, which was purchased by Kindred in 2011, had policies and procedures in place that aimed at billing Medicare for the highest reimbursements, without evaluating what was best for patients. To read more about the alleged fraudulent activity, The Whistleblowers. The settlement resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the FCA in December 2011 by Janet Halpin, a physical therapist and former rehabilitation manager for RehabCare and Shawn Fahey, an occupational therapist who worked for RehabCare. The whistleblowers stand to receive nearly $24 million as part of the settlement. For more information, click here. To read a prior blog I wrote on a similar case, click here. The Legalities of Such Cases. This case was brought under the federal False Claims Act which mandate’s standards and regulations for both civil and criminal penalties against those falsely billing the government. Most states have enacted their own specific version of whistleblower laws. False claims cases, such as this recent one, are typically carried out in a qui tam (or whistleblower) proceeding. This type of action involves a private party filing a lawsuit against a defendant who allegedly is defrauding the government. Usually these types of cases are designed to protect the whistleblowers from receiving any potential prosecution or punishment due to involvement in the fraudulent actions. The government urges healthcare providers to step forward and report illegal and fraudulent activities as soon as they are uncovered. The False Claims Act serves as a system of rewards which encourages whistleblowers to bring these issues to the government’s attention. I have written a detailed two-part blog series discussing the ins and outs of false claims lawsuits involving whistleblowers in the healthcare industry. To read part of one that blog, click here. To read part two of that blog, click here. If you are a health professional and you know your employer or company is committing fraud, remember this is your taxpayer money being stolen. You could receive a big reward such as Janet Halpin did in this case ($24 million), if you come forward with actual evidence that false claims have been submitted. However, remember that you must have actual documentary evidence that there were actual false claims submitted to the goverment. Sources: Poizner, Michaela. “Nation’s largest skilled therapy provider settles FCA allegations for $125 million.” AHLA. (January 20, 2016). Web. Kass, Dani. “Rehab Therapy Co., Nursing Centers Pay $125M in FCA Deals.” Law360. (January 12, 2016). Web. About the Author: George F. Indest III, J.D., M.P.A., LL.M., is Board Certified by The Florida Bar in Health Law. He is the President and Managing Partner of The Health Law Firm, which has a national practice. Its main office is in the Orlando, Florida, area. www.TheHealthLawFirm.com The Health Law Firm, 1101 Douglas Ave., Altamonte Springs, FL 32714, Phone: (407) 331-6620. KeyWords: false claims, Medicare false claims, False Claims Act (FCA), unnecessary procedures, false billing, Medicare, Medicare fraud, Medicare audit, whistleblower, qui taim, qui tam suits, qui tam relator, whistleblower attorney, whistleblower lawyers, whistleblower protection, legal representation, False Claims Act attorney, False Claims defense lawyer. Health lawyer, health law, The Health Law Firm The Health Law Firm” is a registered fictitious business name of George F. Indest III, P.A. – The Health Law Firm, a Florida professional service corporation, since 1999. Copyright © 1996-2016 The Health Law Firm. All rights reserved.

TAGGED:False Claims ActKindred
Share This Article
Facebook Copy Link Print
Share
By Jennifer Warren
This is Jennifer Warren, staff writer at GoodFirms – a review and research platform for top ecommerce development companies, blockchain development companies among many others. A bookworm at heart, I have successfully guest blogged for top sites such as Crazyegg, Semrush, Searchenginepeople, Sitepronews, Volusion.com, Socialnomics, jeffbullas, mediapost among others.

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

healthcare providers
Hidden Injuries After An Accident: What Healthcare Providers Should Watch For
Infographics
July 15, 2025
pediatric healthcare spaces
Designing Calm: How Pediatric Healthcare Spaces Reduce Anxiety Through Thoughtful Design
Infographics
July 15, 2025
EHR
The Hidden Costs Of The ER: What You’re Really Paying For
Infographics
July 15, 2025
9 Lifestyle Tweaks That Can Add Years to Your Life
9 Healthcare Lifestyle Tweaks That can Add Years to Your Life
lifestyle
July 11, 2025

You Might also Like

cutting costs at hospitals
BusinessFinanceHospital Administration

What Healthcare Facilities are Doing to Cut Costs and Remain Competitive

December 18, 2013
Health care

A Changing World: 4 Things that will Change Healthcare in the next 10 Years

June 20, 2017
Health care

Why Are People Afraid Of Life Insurance?

July 19, 2019

Red Light Cameras Save Lives

March 9, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?