Former group home operator settles billing dispute
A former Connecticut group home operator that had facilities in Norwich and Lebanon as well as other areas of the state has agreed to pay $1.5 million to resolve a dispute over its Medicaid billings, Attorney General George Jepsen and U.S. Attorney Deirdre M. Daly announced Tuesday.
REM Connecticut Community Services Inc., which shuttered its Middletown-based operations two years ago and closed 35 group homes serving disabled and at-risk youths, agreed to the civil settlement with state and federal authorities. Regulators alleged that REM had charged interest payments to the government, including expenses related to acquisitions and other financial restructuring, that were not allowable under state regulations.
"Providers who bill government health insurance programs, such as Medicaid, must scrupulously follow the rules and regulations," Daly said in a statement. "The U.S. Attorney's office will vigorously pursue health care providers who receive payments from federal health care programs that they are not entitled to receive."
REM has denied allegations, but agreed to pay $310,975 to the state and federal governments while also forfeiting nearly $1.2 million that the state withheld pending the investigation's outcome. Proceeds will be divided equally between state and federal authorities.
The billings under dispute occurred between 2007 and 2014, when REM closed its Connecticut group homes that served clients under the Department of Developmental Services and the Department of Children and Families.
"I'm pleased that we have reached a resolution to this case," Jepsen said in a statement. "I appreciate the continued coordination and partnership with our client agencies and our law enforcement partners to ensure that our most vulnerable citizens as well as our taxpayer interests are protected."
CALL: 1-800-HHS-TIPS; the Health Care Fraud Task Force, (203) 777-6311; Attorney General, 860-808-5040; Chief State's Attorney, 860-258-5986; DSS, 1-800-842-2155
EMAIL: ag.fraud@ct.gov; conndcj@ct.gov; providerfraud.dss@ct.gov
VISIT: http://www.fightfraud.ct.gov
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