Prison Health Care Provider Naphcare Agrees to Settle False Claims Act Allegations

On June 25, 2021, a prison health care provider entered into an agreement with the Department to pay $694,593 to resolve False Claims Act allegations.  According to the settlement agreement, the government alleged that from January 1, 2014, through June 20, 2020, Naphcare, Inc. submitted claims for payment to the Federal Bureau of Prisons that falsely represented the medical services provided to inmates.  Specifically, the Government contended that when certain physicians did not indicate the type of service performed on onsite visit sheets at the U.S. Penitentiary in Terre Haute, Indiana, NaphCare charged the government for higher-level services than were provided.  In addition, the Government contended that for some medical services provided at the Federal Correctional Institution in Victorville, California, NaphCare similarly submitted claims for payment that reflected higher levels of services than physicians actually performed.  No determination of liability was made by this settlement.  The investigation was conducted by the OIG’s Fraud Detection Office, with assistance from the OIG’s Office of Data Analytics.