DOJ Announces $32.7 Million False Claims Act Settlement with Vibra Healthcare.

Date posted: October 4, 2016

The Department of Justice (DOJ) recently announced that Vibra Healthcare, LLC (Vibra) agreed to pay $32.7 million to settle alleged False Claims Act (FCA) violations.  Vibra also agreed to enter into a corporate integrity agreement with the Department of Health Human Services (HHS) Office of Inspector General (OIG).  Vibra is a national hospital chain headquartered in Mechanicsburg, Pennsylvania, that operates 36 freestanding long term care hospitals (LTCHs) and inpatient rehabilitation facilities (IRFs) in 18 states.  The government claimed that Vibra knowingly submitted false claims to Medicare for medically unnecessary services.

The government’s complaint further alleged that between 2006 and 2013, Vibra:

  • Wrongfully admitted several patients who did not display the requisite medically complex signs or symptoms for admission into five LTCHs and one IRF;
  • Extended LTCH patient stays regardless of medical necessity, qualification, or quality of care; and
  • Ignored recommendations from Vibra clinicians to release patients ready for discharge.

A whistleblower lawsuit filed by a former Vibra health information coder under the qui tam provisions of the FCA prompted the settlement.  The whistleblower will receive at least $4 million of the settlement amount.

The DOJ Justice News article is available at:

https://www.justice.gov/opa/pr/vibra-healthcare-pay-327-million-resolve-claims-medically-unnecessary-services.

United States Department of Justice.  “Vibra Healthcare to Pay $32.7 Million to Resolve Claims for Medically Unnecessary Services.”  Justice News.  28 Sept. 2016.

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