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May,
2002
 Northwestern Human Services Civil Lawsuit
Settlement
On May 29, 2002, United States
Attorney Patrick L. Meehan announced that Northwestern Human
Services, Inc. (NHS), has agreed to pay $7.8 million to the government to
resolve civil claims that the company submitted false and fraudulent bills
to Medicare and Medicaid, seeking reimbursement for mental health services.
United States Attorney Meehan also stated that the government filed criminal
charges of two counts of mail fraud against Philadelphia-based Northwest
Center Inc., a former subsidiary of NHS.
Under the terms of the agreement,
NHS will pay $7.8 million to the United States, and undertake a Corporate
Integrity Agreement to ensure that all of NHS's programs fully comply with
Medicare and Medicaid rules and regulations. The Corporate Integrity
Agreement requires annual audits and monitoring to ensure ongoing
compliance. NHS has terminated the Medicare PHP programs that are the
subject of this settlement. The Medicaid PHP programs are now subject to the
Corporate Integrity Agreement under NHS's new administration and compliance
group.
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