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Telehealth Company Agrees to Pay $300,000 to Resolve False Claims Act Allegations

US Attorney Erin Creegan announced today that the US Attorney’s Office for the District of New Hampshire has entered into a settlement agreement with LifeWorks Counseling Associates, PLLC and its owner Dr. David Ferruolo where they will pay $300,000 to resolve allegations that they violated the False Claims Act by improperly billing Medicaid for services provided by an individual excluded from the Medicaid program. No program payments may be made for services furnished by an individual excluded by the US Department of Health and Human Services, Office of the Inspector General (HHS-OIG). LifeWorks is telehealth mental health provider based in New Hampshire. The United States contended that Ferruolo and LifeWorks submitted claims and received reimbursement from Medicaid for services provided by Erik Alonso, who was excluded from federal healthcare programs by HHS-OIG at the time such services were provided, which were therefore not reimbursable. To resolve their liability, Ferruolo and his company will pay $300,000.