Skip to content

Consent Judgment Against Pennsylvania Company over False Therapy Billing Claims

The United States District Court for the Eastern District of Pennsylvania has entered a consent judgment against Segal Arts, LLC, and its sole owner and manager, Irina Segal. In its complaint against Segal and her business, the United States alleges that they violated the False Claims Act by submitting or causing the submission of claims for payment to Medicare for one-on-one occupational therapy services that were not provided. Instead of the medically necessary one-on-one therapeutic exercise described in Segal Arts’ Medicare billing, Segal Arts provided group arts-and-crafts sessions to Medicare beneficiaries at assisted living and similar facilities in Pennsylvania and New Jersey. Among other things, the complaint alleges that, even after Segal was interviewed and educated by HHS-OIG agents about the individual, skilled therapy requirements associated with the Current Procedural Terminology (CPT) code used in the billing, Segal Arts failed to repay to the Medicare program the amounts it had reimbursed for non-covered, group art sessions. The consent judgment requires Segal to repay $200,000, based on her ability to pay.