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Press Release

Outpatient Physical Therapy Practice, Old Towne Physical Therapy, to Pay $710,000 to Resolve False Claims Act Allegations

For Immediate Release
U.S. Attorney's Office, District of Delaware

WILMINGTON, Del. - Old Towne Physical Therapy LP has agreed to a $710,000 settlement with the government to resolve allegations of health care fraud arising under the False Claims Act.  Old Towne Physical Therapy is an outpatient physical therapy practice that owns three clinics in Delaware.  The United States contends that Old Towne improperly billed Medicare for physical therapy services.  The settlement was announced today by United States Attorney Charles M. Oberly, III. 

Allegedly, from August 1, 2007 through November 13, 2009, Old Towne submitted claims to Medicare for physical therapy services performed at the Old Towne clinics by physical therapists and physical therapist assistants without the adequate supervision by a Medicare-enrolled physical therapist, as required by Medicare rules.  As part of the resolution of this case, Old Towne and its parent company, U.S. Physical Therapy, Inc., entered into a Corporate Integrity Agreement with the Department of Health and Human Services’ Office of Inspector General.

"The United States Attorney's Office for the District of Delaware is to committed to ensuring that Medicare beneficiaries receive the quality health care they deserve, and that the government gets what it pays for," said Oberly.  "When providers cut corners by failing to ensure that procedures are adequately supervised, it cheats both the patients and the government."

This case was investigated by the United States Attorney's Office for the District of Delaware and the United States Department of Health and Human Services' Office of Inspector General.  Within the United States Attorney's Office, the case was handled by Assistant United States Attorneys Jennifer Hall and Shannon Hanson, and Auditor Lawrence Kutys.

Updated February 4, 2016