A settlement has been reached to resolve False Claims Act allegations against Grenada Lakes Medical Center.
The allegations arose from a lawsuit that claimed Grenada Lakes Medical Center (GLMC) sought and received reimbursement from Medicare for services that were not medically reasonable or necessary.
According to the government, allegedly, from January 2005 until April 2013, the hospital submitted claims for Intensive Outpatient Psychotherapy (IOP) services that did not qualify for Medicare reimbursement. The IOP services in question were performed on GLMC’s behalf by Allegiance Health Management, a post-acute healthcare management company based in Shreveport, Louisiana, but billed to Medicare by GLMC directly.
“We will not tolerate hospitals that place profit over legitimate patient care by billing for medically unnecessary services,” said C.J. Porter, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General. “In coordination with our partners, we will continue to investigate these cases and ensure taxpayer funds are used as intended.”
The Whistleblower, Ryan Ladner, will receive approximately $195,000 as his share of the GLMC settlement.