Qui Tam Lawsuit Triggers $1.5 Total Payment by Owners of Skilled Therapy Provider

After reporting fraud committed by a company providing treatment for muscle pain, a whistleblowing former employee can receive a share of the $1.5 million paid to the government by the company’s current and former owners. The False Claims Act case involving Brynwood Myofascial Therapy LLC of Rockford, Illinois brought forth evidence of several specific types of Medicare fraud.

The U.S. Attorney’s Office for the Northern District of Illinois announced the settlement agreement and consent order against the skilled care provider in February, 2024. As a case filed pursuant to the qui tam provision of the False Claims Act, the ex-Brynwood worker will benefit by drawing the government’s attention to improper acts committed by the company’s prior and current owners, Marla Monge and Malgorzata Zasadny. Monge is required to pay about $615,000, while Zadasny’s penalty is approximately $953,000.

Specific misconduct that was noted in the settlement announcement includes the following:

  • Brynwood billed Medicare for treatments purportedly conducted while no one from the company was in the United States.

  • Treatments that were supposed to have been provided by licensed physical or occupational therapists were actually done by massage therapists.

  • Physical therapy assistants and occupational therapy assistants provided services without required supervision.

  • Miscoding of certain services to obtain excessive payments.

  • Claims for occupational and physical therapy treatments at times and in locations where no qualified professional was on site. 

While the allegations in the Brynwood case might be disturbing, they are not rare. Government healthcare programs such as Medicare and Medicaid lack the resources to keep track of each provider that receives payments. This is why whistleblowers, particularly current or former employees, are so valuable. When they provide current, credible information on fraudulent practices, the government has a much better chance of recovering ill-gotten gains and averting similar conduct in the future. 

Here, the former Brynwood worker triggered an investigation that led to a seven-figure payment to the government and likely a six-figure payment to themselves. Whether you work in the healthcare industry or some other field, you could be eligible to collect similar compensation if you are aware of a fraud against the government. The attorneys at Kardell Law Group handle all types of qui tam cases and can give you an honest assessment as to whether you have a case.