Three Idaho Hospitals Agree to Settle False Claims Lawsuit for $3M

A settlement has been reached over a False Claims lawsuit involving three hospitals in Idaho, two speech therapists and their speech therapy businesses, according to a Local News 8 report.

In 2007, a lawsuit under the False Claims Act was filed against Matthew Stevens and Michelle Dahlberg by whistleblower Jennifer Putnam, whose connection to the defendants was not disclosed in the report. The federal government later intervened in the lawsuit against the two speech therapists, alleging that starting in 2011, the pair and their businesses used unlicensed aids to provide speech therapy services to outpatients of Eastern Idaho Regional Medical Center, Madison Memorial Hospital and Idaho Falls Recovery Center, according to the report.

It was alleged that the improper services caused false claims to be billed to Medicaid as licensed speech therapy. The United States will recover almost $2.5 million, with approximately $364,000 going to the whistleblower, according to the report.

Ms. Dahlberg and Mr. Stevens responded to the settlement with claims that the investigation was poorly conducted, and they are denying any wrongdoing, according to the report.

Read the news report about the Medicaid fraud in Idaho.

Read other coverage about Medicaid fraud:

- New Jersey Psychiatrist Sentenced to 3 Years Imprisonment for Medicare, Medicaid Fraud

- Trial Begins Over Allegations Former Archbold Medical Center's President Committed Medicaid Fraud

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