Monday, December 20, 2004

Massachusetts day treatment center will settle Medicaid overcharge claims

A day treatment center for disabled people in Ashland, Massachusetts, overcharged the government Medicaid program by exaggerating clients' disabilities to earn bigger payments, according to federal and state investigators.

Columbia Hospital Corp., which previously owned the MetroWest Day Habilitation Program in Ashland, has agreed to pay Massachusetts and the federal government $960,000 to settle the claims.

The settlement is the result of a whistleblower suit filed by a woman who worked at the center and who reported the fraud. She will receive a reward of $160,000.

The Boston Globe reported on the story on December 16, 2004.