A western Massachusetts addiction treatment group, SaVida Health PC, has agreed to pay $2 million to settle allegations of overbilling and fraudulent medical practices, according to a statement from the state’s attorney general. This settlement comes after SaVida allegedly mischarged the Medicaid program for unnecessary tests and over-represented the level of services provided during office visits.
Allegations of Overbilling and Unnecessary Tests
The Massachusetts Attorney General’s office claimed that SaVida up-coded evaluation and management office visits, leading to inflated charges for services that did not match the billings. In addition, the company allegedly billed for routine urine drug tests that were deemed medically unnecessary, further compounding the false claims made to the Medicaid program, MassHealth.
These actions, according to the AG’s office, violated both the Massachusetts False Claims Act and the Medicaid False Claims Statute. The group’s actions were considered breaches of its contracts with MassHealth and, in the attorney general’s view, amounted to unjust enrichment.
Ensuring Accountability with a Compliance Monitor
“This settlement serves as a stark reminder that those who bill taxpayer-funded programs must comply with the law,” Massachusetts Attorney General Andrea Joy Campbell said in a statement. “We will continue to protect these vital public resources and hold providers accountable to ensure fairness and transparency.”
