Post Acute Medical, LLC, (PAM) a Pennsylvania-based operator of long-term care and rehab nationwide, has agreed to pay the United States, Texas, and Louisianaafter violating the False Claims Act. PAM’s conduct allegedly resulted in false claims to Medicare as well as certain Medicaid programs. The latter are jointly funded by both the federal and state governments. Under the settlement, PAM will pay $13,031,502 to the United States, $114,016 to Texas, and $22,482 to Louisiana.
PAM has been charged with knowingly submitting claims to the Medicare and Medicaid programs that resulted from violations of the Anti‑Kickback Statute and the Physician Self‑Referral Law (commonly referred to as Stark Law).
Post-Acute Medical (PAM) created many physician-services contracts on behalf of its hospitals, but the ruling found that the payments under these contracts incited physicians to refer patients to PAM facilities.
“Medicare and Medicaid beneficiaries depend on their healthcare providers to make decisions based on sound medical judgment,” said U.S. Attorney David J. Freed. “Our office will take decisive action to address allegations that medical providers are paying or receiving improper financial benefits that could influence medical decision-making.”