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Maine Nursing Facility Agrees to Pay Feds $1.2 Million in Medicare Dispute

BANGOR, Maine - A Maine skilled nursing facility has agreed to pay the U.S. government $1.2 million to resolve allegations over inflated Medicare claims.

The U.S. government alleges that Ross Manor in Bangor failed to take sufficient steps to prevent its subcontractor, RehabCare, from providing unreasonable or unnecessary levels of therapy to Medicare patients in order to bill at the highest reimbursement level.

"Throughout this matter, Ross Manor has worked with the federal government to understand where it can exercise more oversight of the billing and record keeping practices of its contractors," says Suzanne Spruce of Eastern Maine Health Systems, which includes Ross Manor as a member.

Spruce says Ross Manor has put measures in place to improve its oversight. It's still contracting therapy services with RehabCare, which operates in 27 locations in Maine.