Penn State settles for $900K after its psychological clinic was accused of violating Medicare rules
Penn State has agreed to pay nearly $900,000 after its psychological clinic at University Park was accused of providing services over a 5-year period that violated Medicare rules and regulations, according Thursday to the U.S. Attorney’s Office in the Middle District of Pennsylvania.
The $899,824.55 resolves allegations of civil liability after the university — through the clinic — was accused of submitting improper claims related to behavioral health services with respect to the “improper” supervision of doctoral students, “incident-to” billing requirements and/or the credentialing of licensed practitioners for Medicare participation. According to U.S. Attorney John C. Gurganus, the clinic is also alleged to have submitted claims for evaluation and management services that were not supported by the medical record.
The issues — which involved Medicare, TRICARE and Medicaid — occurred between Feb. 1, 2015 and July 31, 2020. After discovering the problems, Penn State took “prompt corrective action” and disclosed it to the U.S. Attorney’s Office, according to the Middle District of Pennsylvania.
Penn State issued the following updated statement Thursday afternoon:
“In September 2021, Penn State self-disclosed to the U.S. Attorney’s Office for the Middle District of Pennsylvania various billing issues it discovered after an internal assessment of the Psychological Clinic, which is part of the College of the Liberal Arts and serves Centre County and beyond by providing psychological services and training for the next generation of professional psychologists,” the university statement read. “This clinic is separate and distinct from Counseling and Psychological Services, which serves the general student population at Penn State.
“The university worked cooperatively with the government to address these complex healthcare billing issues, with Penn State’s Psychological Clinic committed to enhancing its healthcare compliance program. We are pleased to have resolved this matter. “
Restitution is $599,833.03 of the settlement amount. Penn State is ordered to pay the full amount within 30 days of the agreement.
According to a news release, the matter was handled by the Department of Health and Human Services (HHS), Office of Counsel to the Inspector General (OCIG), the Defense Health Agency (DHA), acting on behalf of the TRICARE program, and Assistant U.S. Attorney Tamara Haken of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office for the Middle District of Pennsylvania.
This story was originally published March 3, 2022 at 10:20 AM.
