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Encompass Health to pay $48 million to resolve False Claims Act allegations - U.S. DOJ

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WASHINGTON (Reuters) – Encompass Health Corp <EHC.N> has agreed to pay $48 million to resolve allegations that it violated the False Claims Act, the U.S. Justice Department said on Friday.

The settlement resolves allegations in three lawsuits that some of Encompass Health’s inpatient rehabilitation facilities provided inaccurate information to the federal Medicare programme to maintain their status as an IRF and earn a higher rate of reimbursement, and that some admissions were not medically necessary, the department said.

The department said the settlement resolved the allegations without any determination of liability. The company separately said it denied any wrongdoing in the settlement.

“The evidence establishes that Encompass Health did nothing wrong,” the company’s CEO, Mark Tarr, said in a statement.

“But to stop this interminable investigation and avoid further expense, we decided it is in the best interests of Encompass Health and its shareholders to settle with DOJ and end the related litigation.”

(Reporting by Tim Ahmann)

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