An alcohol and drug outpatient recovery center in Louisville has been fined $300,000 to resolve civil allegations that it violated the False Claims Act, a federal law that prohibits causing the submission of false or fraudulent claims to the federal government.
According to the U.S. Attorney for the Western District of Kentucky, federal prosecutors, in the government’s settlement agreement with Recovery Services LLC, allege the company billed Kentucky Medicaid for urine drug screens for patients who did not receive individualized medical assessments. Kentucky Medicaid only pays for urine drug screens that are individualized to each patient for their medical diagnosis or treatment, prosecutors stated.
The U.S. also alleges that Recovery Services, formerly known as Recovery Chestnut, billed Kentucky Medicaid for urine drug screens for residential patients, despite only being licensed to provide outpatient services. Kentucky Medicaid does not pay for residential services, including urine drug screens, performed by outpatient providers.
Investigators encourage anyone with information about the improper billing of urine drug testing, or other potential fraud, abuse, or mismanagement of Medicare or Medicaid funds, to contact the U.S. Department of Health and Human Service’s hotline at 800-HHS-TIPS (800-447-8477).
By Ken Howlett, News Director
Contact Ken at ken@k105.com
