Psychotherapy Services Provider Agrees to Pay


Carenow Services LLC agreed to pay $2 million to settle allegations that it violated the False Claims Act by billing Medicare and Medicaid for psychotherapy sessions at nursing homes and skilled nursing facilities that were medically unnecessary, improperly documented, or billed at higher intensity levels than justified, a practice known as “upcoding.” A federal agent said it exploited both its access to federal health care dollars and its relationship with nursing facility residents. Read a Department of Justice press release.



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