Feds investigate center for Medicare fraud

Feds investigate center for Medicare fraud


CHATTANOOGA (AP) - Documents unsealed in federal court give details of a federal investigation into allegations of Medicare fraud at Cleveland-based Life Care Centers of America.

A judge unsealed the records Friday after a request from Chattanooga Times Free Press attorney Bud Jackson.

According to court records, prosecutors accuse Life Care supervisors of directing workers to max out unnecessary therapies for patients in order to get higher reimbursement from Medicare. The records show a federal probe began in 2008 after two whistle-blower lawsuits were filed against the company.

In a letter to employees, Life Care denied the allegations, and said the company saved Medicare $400 million from 2006 to 2010.

Medicare paid $4.2 billion to Life Care between 2006 and 2011.

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