ENCOMPASS HEALTH CORP

The DOJ announced in July 2019 that Encompass Health Corporation, the nation's largest operator of inpatient rehabilitation facilities, agreed to pay $48 million to resolve False Claims Act allegations. Beginning in 2007, certain Encompass facilities falsely diagnosed patients with "disuse myopathy" when there was no clinical evidence for the condition, in order to maintain IRF classification and earn higher Medicare reimbursement rates. Additionally, Encompass facilities allegedly admitted patients who were too sick or disabled to participate in or benefit from intensive inpatient therapy. Three whistleblowers -- a former contract physician in Florida, a former therapy director in Texas, and a former medical director in Virginia -- filed the underlying qui tam lawsuits and received a collective $12.4 million share of the settlement. The HHS Office of Inspector General participated in the investigation.