Physical Therapy Companies Agree to Pay $4 Million to Settle False Claims Allegations

  • New York AG Letitia James and the U.S. Department of Justice reached a settlement with Williamsburg Physical Therapy, P.C., Euro Physical Therapy, P.C., and the companies’ owners and operators (collectively “the Companies”) to resolve allegations that the Companies falsely billed Medicaid, Medicare, and other federal healthcare benefits programs for physical therapy services in violation of the federal and state False Claims Acts.
  • According to the AG’s office, a qui tam lawsuit brought by whistleblowers alleged that the Companies billed the federal programs for physical therapy services provided by someone other than the licensed therapist identified on the claim, including unlicensed aides, and that the Companies submitted backdated claims for services provided after the authorization for the treatment had expired.
  • Under the terms of the settlement agreement, the Companies will pay $4 million, of which $2.8 million will be paid to the United States and $1.2 million to New York.