Mindpath Care Centers, a statewide behavioral health provider in North Carolina, and its former officers have agreed to a $1.9 million settlement over allegations of submitting false Medicare claims. The settlement resolves claims related to improper billing for psychotherapy and related services, according to the U.S. Attorney's Office.
U.S. Attorney Ellis Boyle noted that the settlement reflects efforts to protect taxpayer funds and ensure the integrity of health care programs. He stated that health care providers are required to submit claims based on documented medical need and that the office will take action against violations of the law. Special Agent in Charge Kelly J. Blackmon of the HHS Office of Inspector General emphasized the importance of accurate billing in maintaining Medicare’s integrity.
The allegations originated from a whistleblower complaint regarding Mindpath’s billing practices between 2018 and 2020, including claims that the practice did not provide necessary documentation for psychotherapy treatments and did not address employee concerns. Mindpath has denied the allegations. The $1.9 million settlement does not constitute an admission of liability or a judicial determination. The payment resolves claims brought under the False Claims Act, which allows for triple the amount of any improperly claimed funds, along with penalties for each false claim.
Neal Fowler, an Assistant United States Attorney, represented the United States in the case. Mindpath has maintained that it did not engage in wrongdoing. The settlement was reached to resolve the matter without further litigation, avoiding the additional time and resources that a prolonged court case would require.
