Life Care Centers of America under federal investigation for Medicare fraud allegations

Life Care Centers of America under federal investigation for Medicare fraud allegations

November 30th, 2012 by Todd South in News

Life Care Centers of America, headquartered in Cleveland, Tenn.

Photo by Jenna Walker/Times Free Press.

Court documents unsealed today show that the federal government is investigating Life Care Centers of America, whose headquarters is in Cleveland, Tenn., for a suspected nationwide Medicare fraud scheme.

The documents allege that the company, which has more than 200 facilities in 28 states, has instituted a policy of Medicare up-coding and unnecessary therapy treatments since at least 2006.

Court documents show Medicare paid the company $4.2 billion in payments from 2006 to 2011.

The whistleblower lawsuits were filed separately in 2008 by former employees, one in Florida, the other in Tennessee.

For more see tomorrow's Times Free Press.