Medstar Ambulance to Pay $12.7 Million to Settle False Claims Charges

Medstar Ambulance Inc., including four subsidiary companies and its two owners, Nicholas and Gregory Melehov, will pay $12.7 million to resolve allegations that the Massachusetts-based ambulance company knowingly submitted false claims to Medicare.

medstar

The settlement resolves allegations that Medstar submitted false claims to Medicare for ambulance transport services.

Federal officials alleged that Medstar routinely billed for services that did not qualify for reimbursement because the transports were not medically reasonable and necessary, billed for higher levels of services than were required by patients’ conditions, and billed for higher levels of services than were actually provided.

The allegations were filed in a lawsuit by Dale Meehan, a former employee in Medstar’s billing office, under the whistleblower provisions of the False Claims Act.

Those provisions allow private individuals to sue on behalf of the United States and to share in the proceeds of any settlement or judgment.

Meehan will receive approximately $3.5 million.

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