Rosseau Management Inc. will pay $300,000 to resolve a Medicare billing fraud lawsuit accusing the assisted living facilities owner of letting subcontractor RehabCare Group East. Inc. turn in fraudulent Medicare claims. The latter provided rehabilitation therapy at three facilities.
According to the Department of Justice’s U.S. Attorney’s Office in the District of Massachusetts, previous to October 2011, Rosseau did not take the necessary steps to stop RehabCare from providing high levels of therapy that were unreasonable or unnecessary during “assessment reference periods.” This caused the assisted living facilities to bill for care for their Medicare patients at the highest levels of reimbursement. During other times when assessment wasn’t a factor, RehabCare gave these same patients less therapy.