SpectraCare Health Systems Will Pay $1 Million to Settle Overbilling Allegations
Dothan’s SpectraCare Health Systems agreed to pay $1 million to resolve a federal lawsuit alleging the organization overcharged Medicaid, announced Acting United States Attorney Sandra J. Stewart.
A notice of dismissal was filed Friday to resolve a qui tam lawsuit claiming the nonprofit violated the False Claims Act, although no liability was determined in the settlement agreement.
The government’s multiyear investigation, which spawned from a whistleblower complaint, sought to discover whether SpectraCare knowingly violated the False Claims Act by improperly billing Alabama Medicaid for Basic Living Skills services, and by failing to return overpayments to the Alabama Medicaid Agency, which constitutes a “reverse false claim” actionable under a statute in the False Claims Act.
