published Friday, November 30th, 2012

Life Care Centers of America under federal investigation for Medicare fraud allegations

  • photo
    Life Care Centers of America, headquartered in Cleveland, Tenn.
    Photo by Jenna Walker /Chattanooga Times Free Press.

Court documents unsealed today show that the federal government is investigating Life Care Centers of America, whose headquarters is in Cleveland, Tenn., for a suspected nationwide Medicare fraud scheme.

The documents allege that the company, which has more than 200 facilities in 28 states, has instituted a policy of Medicare up-coding and unnecessary therapy treatments since at least 2006.

Court documents show Medicare paid the company $4.2 billion in payments from 2006 to 2011.

The whistleblower lawsuits were filed separately in 2008 by former employees, one in Florida, the other in Tennessee.

For more see tomorrow’s Times Free Press.

about Todd South...

Todd South covers courts, poverty, technology, military and veterans for the Times Free Press. He has worked at the paper since 2008 and previously covered crime and safety in Southeast Tennessee and North Georgia. Todd’s hometown is Dodge City, Kan. He served five years in the U.S. Marine Corps and deployed to Iraq before returning to school for his journalism degree from the University of Georgia. Todd previously worked at the Anniston (Ala.) Star. Contact ...

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