United States Intervenes in False Claims Act Suit Against Virginia Medicaid Providers

Wed Nov 4, 2009 5:15pm EST
 
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United States Intervenes in False Claims Act Suit Against Virginia Medicaid
Providers


WASHINGTON, Nov. 4 /PRNewswire-USNewswire/ -- The United States and the
Commonwealth of Virginia have intervened in a False Claims Act suit in the
Western District of Virginia against the Medicaid providers Universal Health
Services Inc., Keystone Marion LLC and Keystone Education and Youth Services
LLC, the Justice Department announced today. They did business as the Keystone
Marion Youth Center, a residential facility in Marion, Va., that receives
Medicaid funds to provide psychiatric counseling and treatment for boys ages
11-17.

This False Claims Act lawsuit was filed by several former therapists who
worked at the Marion residential facility.  The suit alleges that defendants
provided sub-standard care to adolescents in violation of federal and state
Medicaid requirements, falsified records to cover up their serious violations
and filed false Medicaid claims.  Under the False Claims Act, a health care
provider that submits false or fraudulent claims to a federal health care
program is liable for three times the government's damages, plus a civil
penalty for each false claim. 

"The Department of Justice is committed to ensuring that Medicaid recipients,
particularly troubled adolescents in need of psychiatric services, receive the
appropriate care and treatment they require," said Tony West, Assistant
Attorney General for the Civil Division of the Department of Justice.  "We
must protect Medicaid from fraudulent practices that deprive beneficiaries of
the quality health care they deserve."  

"The Medicaid program was designed to ensure that the most vulnerable members
of our society receive quality medical care.  The intervention in this suit
demonstrates our commitment in the Western District of Virginia to protecting
the integrity of Medicaid funds and holding those who violate the law
accountable," said U.S. Attorney Timothy J. Heaphy. 

Assistant Attorney General West acknowledged the efforts made by the Civil
Division of the Justice Department, the U.S. Attorney's Office for the Western
District of Virginia, the Virginia Attorney General's office, the Department
of Health and Human Services' Office of the Inspector General and the
Commonwealth of Virginia's Medicaid Fraud Control Unit.

SOURCE  U.S. Department of Justice

U.S. Department of Justice Office of Public Affairs, +1-202-514-2007, TDD
+1-202-514-1888

 

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