Maryland treatment center settles False Claims Act allegations

The Chesapeake Youth Center in Cambridge, Maryland has paid the federal government a hefty sum to settle claims that the former youth residential treatment facility made false claims for reimbursement to Medicare. The government charged that the facility, which provided inpatient psychiatric services for young people under the age of 21, billed Medicare for nonexistent and substandard treatment. The misconduct allegedly occurred between January 2005 and July 2005.

The youth center denied the allegations but paid the settlement nonetheless.

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