- Associated Press - Tuesday, March 31, 2015

BOSTON (AP) - Federal prosecutors say an elderly living center has agreed to pay $1.2 million to settle allegations of inflated Medicare claims for rehabilitation therapy.

The U.S. attorney’s office in Boston says Ross Manor in Bangor failed to prevent a subcontractor, RehabCare Group East, Inc., from engaging in a pattern and practice of providing high levels of therapy that weren’t reasonable or necessary.

U.S. Attorney Carmen Ortiz said skilled nursing facilities should provide care based on patients’ clinical needs, not tied to financial targets of companies providing that care.

This settlement resolves allegations that Ross Manor failed to prevent other RehabCare practices designed to inflate Medicare reimbursement.

A Ross Manor spokeswoman said it has worked with the government to understand where it can exercise more oversight of the billing and recordkeeping practices of contractors.



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