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U.S. Dept. of Justice announces HealthSouth settlement

The Dept. of Justice announced on December 30, 2004 that HealthSouth Corporation, the nation’s largest provider of rehabilitative medicine services, has agreed to pay the United States $325 million to settle allegations that the company defrauded Medicare and other federal healthcare programs.

The settlement will resolve a variety of allegations involving outpatient physical therapy services and inpatient rehabilitation admissions.

Some of the claims were brought by whistleblowers under the qui tam provisions of the False Claims Act. The whistleblowers will receive a share of the settlement proceeds.

The Dept. of Justice press release was posted on their website on December 30, 2004.

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