$325 Million Settlement reached in Whistleblower lawsuit with HealthSouth Corporation

Settlement Amount: 

A settlement has been reached in a whistleblower class action lawsuit brought against HealthSouth Corporation who is accused of defrauding Medicare and other government health programs.

The settlement grew out of a lawsuit filed in San Antonio by several whistle-blowers under the federal False Claims Act. One of the whistleblowers will receive $8.1 million of the settlement, with others receiving lesser amounts.

Under the agreement, HealthSouth will pay:

• $169 million for improper reimbursement claims for outpatient physical therapy services provided under Medicare, Defense Department or Labor Department programs.

• $89 million for unallowed costs HealthSouth included on its Medicare hospital cost reports and home office cost statements.

• $65 million for other unallowable costs submitted to Medicare.

• $1.7 million for improper skilled nursing costs billed to Medicare and unallowed costs submitted by a subsidiary in Bakersfield, Calif.

If you have a similar case please fill out the form below or email mail@whistleblowerinstitute.com or call: 619-452–1218


If you or someone you know experienced a similar situation or any other wrongdoing within a corporation you should contact mail@whistleblowerinstitute.com or call: 619-452–1218

Go to top