Vericare admits submitting false claims

Vericare Management, San Diego–based provider of psychiatric and psychological services to geriatric patients, agreed yesterday (October 29) to pay more than $1 million to resolve allegations that it violated the federal False Claims Act by overbilling healthcare programs for unnecessary services that it provided.

From January 1, 2012, through December 31, 2014, at 128 facilities, Vericare clinicians performed evaluations on new admissions regardless of whether a physician provided an order indicating that the evaluation was medically necessary. Vericare then submitted improper claims to the federal government, according to the Department of Justice.

The settlement resolves allegations that Vericare incorrectly submitted claims to Medicare for nursing-service evaluations that were not supported by the patients' medical records. The allegations surfaced in a whistleblower lawsuit.