MedStar Ambulance, which has operations in Worcester and throughout Worcester County and MetroWest, has agreed to pay $12.7 million for overbilled Medicare claims, the attorney for the whistleblower in the case announced.
Boston law firm Jeffrey Newman Law said late Friday that MedStar paid out the settlement after a four-year investigation found the ambulance firm collected money for ambulance services that were not medically necessary by adding false information.
“MedStar was pleased to work with the Department of Justice to resolve these overpayment issues,” said Ken Pickering, an attorney for MedStar from Worcester law firm Mirick O’Connell.
In settling the lawsuit, MedStar did not admit any liability, said Pickering.
The lawsuit came about after former billing manager Dale Meehan made the overpayment and false information allegations against the company in a 2013 lawsuit. In the suit, Meehan also alleges she was retaliated against for bringing the issues to the company’s attention.
As part of the overpayment settlement, Meehan is due to receive $3.6 million.
“This is not a case arising from the speculation of a disgruntled employee as has been publicly suggested in the past,” Jeffrey Newman said in his announcement. “Dale Meehan courageously came forward and told the truth about this multi-million-dollar fraud scheme to make more profits.”
The settlement in the case did not include Meehan’s allegation of retaliation, and that part of the lawsuit is still moving forward, with no trial date set, said Pickering.
“We are vigorously defending that part of the lawsuit,” Pickering said.
