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Press Release

Encompass Health Corporation Agrees To Pay $4 Million To Resolve Allegations Of Improperly Billing Medicare

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

LAS VEGAS, Nev. – Encompass Health Corp. (EHC), formerly known as HealthSouth Corporation, has agreed to pay the United States $4 million to settle allegations that an inpatient rehabilitation facility the company owned and operated in Nevada was improperly billing Medicare.

“This significant settlement demonstrates our continued commitment to protecting the Medicare program against fraud and abuse,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Encompass Health Rehabilitation Hospital of Henderson, LLC is owned by EHC, which operates an inpatient rehabilitation facility, formerly HealthSouth Henderson, Inc. (HHI). Kenneth Bowman was the Chief Executive Officer of HHI from approximately January 2010 through approximately March 2012.

The settlement resolves allegations that, from January 1, 2008 through December 31, 2012, HHI improperly assigned inaccurate and artificially low admission Functional Independence Measure scores on Patient Assessment Instrument forms to some of its patients. Given these allegations, the United States alleges that HHI submitted false claims to Medicare seeking and receiving greater reimbursement for its services for those patients than was warranted. 

The claims resolved by this settlement are allegations only, and there has been no determination of liability.

The matter was investigated by the Office of Inspector General (OIG-HHS) of the Department of Health and Human Services (HHS). Assistant U.S. Attorney Roger Wenthe litigated the case.


Updated October 29, 2019

Health Care Fraud