MedStar Ambulance has agreed to pay $2.6 million to settle allegations it submitted false claims to Massachusetts' Medicaid program, MassHealth.
The settlement resolves allegations that MedStar, its parent company Critical Systems and affiliates knowingly submitted false claims to MassHealth for emergency ambulances services when only a less expensive nonemergency level of service was provided, according to a Aug. 1 Massachusetts attorney general's office news release.
The attorney general's office also alleged MedStar did not follow MassHealth regulations because it provided nonemergency ambulance services or wheelchair van equipment services without appropriate medical necessity documentation.
As part of the settlement, MedStar agreed to implement companywide training and update its policies related to compliance with MassHealth medical necessity requirements, according to the release.