Oklahoma City-based Carter Healthcare, its affiliates, and two senior managers have agreed to pay $7.18 million to resolve allegations that they violated the False Claims Act.
Carter Healthcare President Stanley Carter will pay $75,000, and COO Bradley Carter will pay $175,000. The remaining $6.93 million will be paid by Carter Healthcare, according to an Oct. 18 news release from the Justice Department.
From 2014 to 2016, Carter Healthcare allegedly billed Medicare knowingly and improperly for home healthcare to patients in Florida based on therapy provided without regard to medical necessity and overbilled for therapy by upcoding patients' diagnoses, according to the release.
Both Stanley Carter and Bradley Carter agreed to be excluded from participating in all federal healthcare programs for five years as part of the agreement.
Carter Healthcare also agreed to be bound by the terms of a corporate integrity agreement with HHS' Office of Inspector General. The company must implement compliance measures designed to avoid or detect similar conduct.