HealthSouth Corp., Birmingham, Ala., received a subpoena from HHS' inspector general's office related to possible false claims at a Houston long-term acute-care hospital, according to a securities filing.
HealthSouth receives subpoena about Houston LTAC
The subpoena from the Dallas office of the inspector general’s office seeks documents related to patient admissions, length of stay and discharge matters at HealthSouth Hospital of Houston. HealthSouth received the subpoena on June 24. The company is cooperating with the subpoena.
During the third quarter of 2010, HealthSouth received a letter from a lawyer representing two former hospital employees who alleged wrongful termination for refusing to engage in wrongful acts, including Medicare fraud, according to the filing. The lawyer wrote that the employees would not publicize their allegations of fraud if the company settled their termination claims.
HealthSouth refused to negotiate and informed “the relevant authorities of the letter.” HealthSouth also conducted an internal audit and hired an independent consultant to review the matter; as a result of both, the company believes their allegations have no merit. The company is not sure whether the subpoena is related to the former employees’ allegations.
The hospital is one of eight LTACs that HealthSouth has agreed to sell to LifeCare Holdings, Plano, Texas, for $120 million.
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