Attorney General Rutledge reaches $6.5 million settlement with Preferred Family Healthcare on false claims investigation

(Source: WAFB)
Published: Oct. 22, 2020 at 6:27 PM CDT
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LITTLE ROCK, Ark. (KAIT) - An investigation by the Arkansas Attorney’s General office into false Medicaid claims showed a culture of corruption within a healthcare company as state officials reached a nearly $6.5 million settlement in the case.

According to a news release from Attorney General Leslie Rutledge, the multi-million dollar federal and state civil settlements were reached Thursday against Preferred Family Healthcare.

Rutledge said the settlements were part of an investigation done by the Attorney General’s Office Medicaid Fraud Control Unit into allegations of false claims submitted to the Arkansas Medicaid program by former PFH employees.

Of the $6.5 million, the company will pay $4,555,632.10 to resolve a federal false claims case and $1,944,367.90 in a state settlement under the State False Claims Act, Rutledge said in the media release.

Rutledge said that the investigation was developed through the Medicaid Fraud Control Unit, looking into fraud from 2016 to 2018.

According to Rutledge, the company no longer does business in Arkansas.

Rutledge noted that five former employees of the company were charged with Medicaid fraud in state court, while a sixth employee settled false claims or actions in the case.

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