A Mission Viejo-based nursing-home operator, Ensign Group Inc., has agreed to pay $48 million to settle allegations regarding inflated bills to Medicare for therapy sessions that were either unnecessary or never took place. Ensign incentivized therapists to increase the amount of therapy provided to their patients in an effort to meet planned targets for Medicare revenue,regardless of whether the patients needed the treatment. The federal settlement agreement was unsealed late Monday by a federal judge in Los Angeles.
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