Skip to content

Physical Therapy Company to Pay Nearly $5M to Resolve False Claims Act Allegations

United States Attorney Jerome F. Gorgon Jr. announced that Team Rehabilitation Services, LLC, which operates approximately 140 physical therapy clinics in Michigan, Illinois, Indiana, Wisconsin, and Georgia, has agreed to pay $4,969,494 to settle allegations that it violated the False Claims Act by submitting false claims for payment for physical therapy services to several federal healthcare programs. The settlement resolves allegations that, from January 1, 2018, through December 31, 2024, Team Rehab knowingly and improperly submitted false claims to Medicare, Medicaid, TRICARE, the Federal Employees Health Benefits Program (FEHBP), and the United States Department of Veterans Affairs for time-based CPT codes for one-to-one physical therapy services even though those services occurred in a group setting where the provider did not maintain sufficient direct patient contact throughout the service to appropriately bill for those time-based CPT codes.