Telehealth provider settles false claims case for $300K
 
December 12, 2025
 
 
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Minn. seeks to combat fraud with new watchdog position
 
Magnifying glass and one hundred dollars on a blue background, business concept.
(Baurzhan Ibrashev/Getty Images)
Minnesota Gov. Tim Walz has appointed Judge Tim O'Malley as the director of program integrity, a new fraud watchdog role intended to tackle widespread abuse in taxpayer-funded programs. The goal of the position is to enhance fraud prevention across state agencies, including Medicaid programs. O'Malley has an extensive law enforcement and legal background, including roles with the FBI and the state Bureau of Criminal Apprehension.
Full Story: KARE-TV (Minneapolis-St. Paul, Minn.) (12/12)
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Law Enforcement & The Courts
 
Recovery Centers of America agrees to $2M settlement
Recovery Centers of America will pay $2 million to settle allegations that it violated the Controlled Substances Act and the False Claims Act. Audits and investigations by the Drug Enforcement Administration found that the Pennsylvania-based organization mishandled controlled substances, and the government alleges RCA billed the Federal Employees Health Benefits Program and Medicaid for treatment services that were not provided.
Full Story: Department of Justice (12/10)
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Telehealth provider settles false claims case for $300K
LifeWorks Counseling Associates and owner Dr. David Ferruolo have agreed to pay $300,000 to settle allegations that they violated the False Claims Act by submitting claims to Medicaid for services provided by a person excluded from the program. LifeWorks is a New Hampshire-based telehealth mental health provider.
Full Story: Department of Justice (12/10)
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Policy & Regulatory News
 
 
Health care groups call for withdrawal of HIPAA update
HIPAA Journal (12/9)
 
 
Former NAACO exec explains CMS Ambulatory Specialty Model
Healthcare Innovation (12/9)
 
 
FDA clears Bendit Technologies' steerable microcatheter
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VA shifts to risk-based cybersecurity strategy
 
V.A. Medical Center in Kansas City, Mo.
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The Department of Veterans Affairs is implementing a "cyber dominance" strategy to enhance protection of veterans' data, moving from a compliance-based to a risk-based approach to cybersecurity, says VA acting CIO Eddie Pool. The strategy includes zero trust architecture and network microsegmentation. Pool says the VA aims to be a leader in cybersecurity within the federal government. "We do have some great things coming down the pipe in terms of how we're going to modernize this across the board," Pool said.
Full Story: MeriTalk (12/10)
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Health Insurance Industry News
 
2 bills on enhanced ACA subsidies fail in Senate
Neither a bill put forth by Republicans to replace enhanced Affordable Care Act subsidies nor one sponsored by Democrats to extend them garnered enough votes in the Senate to break a filibuster. House Republicans want to vote on an ACA subsidies bill next week, but no vote has been scheduled, nor have they agreed on a bill to advance.
Full Story: NBC News (12/11)
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Diagnoses added after chart reviews for 17% of MA subscribers
Retrospective chart reviews by Medicare Advantage insurers led to additional diagnosis codes for 17% of subscribers that were not reflected in other medical records, according to a Kaiser Family Foundation analysis. Chart reviews resulted in the removal of diagnosis codes for only 1% of subscribers, researchers found. Chart review practices vary significantly among insurers and have drawn scrutiny from the Justice Department, which is pursuing legal action against some insurers for allegedly using chart reviews to inflate risk scores.
Full Story: HealthLeaders Media (12/11)
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Medical News
 
 
Measles cases top 1,900 in US for 2025
Center for Infectious Disease Research and Policy (12/10)
 
 
Pregnancy complications may presage future heart issues
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Researchers study effects of Ore. hospital price cap
The Oregonian (Portland) (12/10)
 
 
 
 
What Your Colleagues Are Reading
 
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GAO: ACA fraud persists despite CMS efforts
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Va. lab agrees to $758K settlement over kickback allegations
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N.J. nursing homes accused of misusing Medicaid funds
The Star-Ledger (Newark, N.J.) (12/10)
 
 
 
 
NHCAA News
 
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