KILLEEN, Texas (KWTX) Union Treatment Center, which owns a facility in Killeen, will pay $3 million to settle civil health care and fraud allegations involving a scheme to defraud the Federal Workers’ Compensation Program, U.S. Attorney Richard L. Durbin, Jr., announced Wednesday.
The medical and physical therapy provider, which also has clinics in Austin, San Antonio and Corpus Christi, will also waive more than $1.6 million in claims for payment and will be permanently barred from participating in federal health care programs, Durbin said.
“Today’s settlement reflects our commitment to combatting fraud in the federal health care system,” Durbin said.
The Federal Workers’ Compensation Program, or FECA, covers about 3 million federal civilian and postal employees for job-related injuries, officials said.
UTC marketed itself to patients covered by the FECA program including unionized postal workers and civilian Army employees, officials said.
Between Jan. 1, 2009 and Dec. 31, 2012, prosecutors alleged that the company submitted false claims “for services it did not render; routinely overcharged for medical examinations; falsely inflated the time patients spent in therapy; and, billed for unnecessary services and supplies,” the U.S. Attorney’s Office said in a press release.
The company was also accused of “offering, paying, soliciting, and receiving kickbacks in exchange for patient referrals.”
The company’s former CEO, Garry Craighead, is serving a 14-year prison sentence after pleading guilty to kickback and money laundering charges.
He was ordered to pay nearly $18 million in restitution.
Former Chief Operating Officer Christine Craighead is scheduled to go on trial in October on conspiracy, wire fraud, kickback and aggravated identity theft charges.
“The workers’ compensation program benefits thousands of postal employees who have received legitimate on-the-job injuries. This investigation should send a clear message to all healthcare providers that workers’ compensation fraud is a federal crime that carries serious consequences and will not be tolerated,” said Special Agent in Charge Maximo Eamiguel, U.S. Postal Service Office of Inspector General Southern Area Field Office.