Union Treatment Center will pay $3 million to resolve allegations the provider defrauded the federal workers' compensation program, known as FECA.
According to the Department of Justice, as part of the settlement, Union Treatment Centers will also waive claims for payment exceeding $1.6 million and be permanently excluded from participating in federal health care programs.
“Today’s settlement reflects our commitment to combatting fraud in the federal health care system,” said U.S. Attorney Richard L. Durbin, Jr. “We will use all of the tools at our disposal, including civil litigation under the False Claims Act, to ensure the integrity of federally funded programs.”
Allegedly, the government claimed that UTC, its former CEO Garry Craighead and former CFO Christine Craighead devised and executed a scheme to overcharge U.S. Department of Labor, Office of Workers’ Compensation Programs (“OWCP”) for services and supplies allegedly rendered to patients covered by the FECA program. Allegedly, between January 1, 2009, and December 31, 2012, the government stated in its complaint that UTC fraudulently billed the FECA program for services never actually rendered; regularly overcharged for medical examinations and lied about the time patients spent in therapy. Furthermore, the complaint alleged UTC billed for services and supplies that were not needed, and offered, payed, sought and received kickbacks in exchange for patient referrals.
Reportedly, the allegations were part of a whistleblower lawsuit, and despite the settlement there has been no actual admission of liability. Garry Craighead is currently serving a 14-year term of imprisonment as a result of his guilty plea to kickback and money laundering charges. He was ordered to pay OWCP nearly $18 million in restitution for damage he caused the FECA program. Christine Craighead is awaiting trial on conspiracy, wire fraud, kickback, and aggravated identity theft charges and her trial is set for October 30, 2017.
