Post-acute-care service provider HealthSouth Corp., Birmingham, Ala., has reached a $325 million settlement with the Justice Department, first reported in a Modern Healthcare Alert on Dec. 21, to resolve issues involving Medicare billing practices. The agreement includes a $75 million initial payment; the rest, including interest, will be paid quarterly through 2007. The agreement resolves litigation brought by the Justice Department in 2002 regarding outpatient physical therapy practices; closes an investigation that started in April 2003 after HealthSouth's financial practices were questioned; and resolves all Medicare cost report issues that occurred between the company and the CMS before Dec. 31, 2003. As part of the settlement, the company has signed an amended corporate integrity agreement with HHS' inspector general's office. -- by Joseph Mantone
HealthSouth confirms $325 million fraud settlement
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