Life Care Centers Investigated for Medicaid Fraud

CLEVELAND, Tenn. (AP) — Federal prosecutors claim a Medicare fraud scheme at Cleveland-based Life Care Centers of America was cooked up and enforced by management.
According to recently unsealed court records obtained by the Chattanooga Times Free Press ( managers are accused of instructing therapists to assign patients to the highest level of therapy regardless of whether it was needed.
The “Ultra High” level and can pay a provider as much as $564, while the lowest rate of therapy pays $231.
The whistleblower lawsuits claim that employees who questioned the policies were often fired within weeks.
Company representatives declined comment to the newspaper, referring reporters to a letter stating that Life Care’s therapy programs improve patients’ conditions and quality of life.
If found guilty, Life Care could face hundreds of millions in fines.

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