The judgment says three Iowa and two South Dakota companies submitted claims to Medicare for therapy services where the claims were false — or the medical conditions of the patients didn’t justify the need for skilled therapy services.
The judgment includes $1.2 million against Sergeant Bluff Healthcare, $228,000 against Red Oak Healthcare, and $775,000 against Logan Healthcare.
Federal officials say the companies were notified their claims for therapy services were inordinately high and the companies failed to take adequate steps to address their billing procedures. The five companies involved are all affiliates of Welcov Healthcare in Minnesota, which is in the midst of bankruptcy proceedings.
The judgments against the South Dakota companies were Elk Point Healthcare ($788,484.69); and Flandreau Healthcare ($115,942.46).