Two Nursing Home Companies on the Hook for Unnecessary Rehab Services

Life Care Services (Life Care) and CoreCare V (CoreCare) have agreed to pay the Department of Justice $3.75 million to settle allegations of false claims for billing for unreasonable or unnecessary rehabilitation therapy through RehabCare Group East (RehabCare), a rehabilitation therapy provider they hired to provide rehabilitation therapy services.  The Department of Justice alleged that Life Care and Core Care failed to prevent RehabCare from providing unreasonable or unnecessary therapy to patients in order to increase Medicare reimbursements to the facilities.  The government also alleged that the two companies failed to prevent RehabCare from engaging in multiple practices designed to inflate Medicare reimbursements. 

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