Psychotherapy Services Provider Nabbed For False Claims Submitted To Medicaid And Medicare

Lori Kalani, Bernard Nash
Cozen O'Connor
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Cozen O'Connor

  • Georgia AG Chris Carr and the U.S. Department of Justice reached a settlement with psychotherapy services provider Carenow Services, LLC and its chief operating officer (collectively “Carenow”) to resolve allegations that Carenow improperly billed Medicaid and Medicare for psychotherapy services in violation of the federal False Claims Act and the Georgia Taxpayer Protection False Claims Act.
  • The case, which arose out of a whistleblower complaint, involved allegations that Carenow fraudulently billed Medicaid and Medicare for medically unnecessary and improperly documented psychotherapy services at nursing homes and skilled nursing facilities. In addition, services that were medically necessary were upcoded and billed at higher reimbursement rate codes than was appropriate for the service provided.
  • According to the U.S. Attorney’s office, under the terms of the settlement, Carenow will pay $2 million, a portion of which will be paid to the whistleblower. The terms of the settlement reflect the credit that Carenow received for immediately cooperating with the government in its investigation and for promptly taking steps to remediate its wrongful conduct.

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