In what is believed to be the first settlement of its kind, a Texas nursing home management company agreed earlier this week to pay nearly $3.2 million to settle allegations that it received kickbacks from various ambulance companies.
Regent Management Services of Galveston manages 12 nursing homes, including 11 in Texas.
According to Federal prosecutors, Regent was accused of accepting free or heavily discounted services for unreimbursable ambulance transportation, in exchange for ambulance companies’ rights to Regent’s more lucrative Medicare and Medicaid transport referrals.
By accepting these kickbacks from ambulance companies, Regent was able to greatly reduce their financial burden for ambulance transportation that is not reimbursed by Medicare, Medicaid, or other third party payors.
Previous investigations regarding ambulance “swapping” arrangements focused on the ambulance companies and not the facilities accepting the free or discounted services. This investigation and subsequent settlement may mean that Federal prosecutors may in the future focus more on facilities that receive kickbacks from their providers/suppliers in exchange for their business.
Frier Levitt is well versed in representing facilities and providers of all kinds who find themselves subjects of governmental investigations, and can also assist in conducting self-reviews to maintain compliance with Federal and State fraud and abuse laws. We also have a specific focus representing ambulance and transport companies in connection with regulatory compliance matters. Contact Frier Levitt today to speak to an attorney.
