Farmington Hills-based doctors group to pay $9.5M in false claims case

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Detroit Free Press | December 23rd, 2009
Health Insurance News

By Todd Spangler, Detroit Free Press

Dec. 23–WASHINGTON — A Farmington Hills-based doctors group will pay $9.5 million to settle allegations that it submitted false claims to Medicare, Medicaid and the military TRICARE medical program, the U.S. Department of Justice said today.

The Farmington Hills-based Visiting Physicians Association will pay $9.5 million to settle allegations that it submitted false claims for unnecessary home visits, tests and procedures, as well as services that were never provided. The claims were for people with Medicare, Medicaid and the military TRICARE insurance programs. The association will make the payments to the U.S. government and the state of Michigan.

Michael Layne, a spokesman for the company, said the firm denied any wrongdoing but decided to settle the case “so we can continue, undisturbed, with our core mission of providing high quality medical services. At no time during this dispute did any party make any allegations of inappropriate patient care.”

Visiting Physicians Association, which has provided home health services in Michigan, Ohio, Georgia and Wisconsin, will make the payments to the U.S. government and the state of Michigan, to settle the allegations that it submitted claims for unnecessary home visits, unnecessary tests and procedures and other services it never provided.

The settlement resolves four lawsuits filed by private plaintiffs under provisions of the False Claims Act, which permit private parties to file an action on the government’s behalf and share in any recovery. This settlement provides that the four whistle-blower plaintiffs will collectively receive a total of approximately $1.7 million.

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