Life Care to pay record $145 million over false claims

[October 25, 2016]  (Reuters) - Life Care Centers of America Inc and its owner Forrest Preston agreed to pay $145 million to resolve a U.S. lawsuit accusing the company of submitting false claims for rehabilitation therapy services that were not reasonable, necessary or skilled, the U.S. Department of Justice said on Monday.

The accord with the Cleveland, Tennessee-based company is the Justice Department's largest with a skilled nursing facility chain, according to Benjamin Mizer, who heads the department's civil division.

(Reporting by Jonathan Stempel in New York; Editing by Dan Grebler)

[© 2016 Thomson Reuters. All rights reserved.]

Copyright 2016 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.