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Ky. ambulance co. settles Medicare fraud case for $1M

The federal government alleged that for six years Trans-Star Ambulance Services filed false claims for transports that were not medically necessary

The Associated Press

LEXINGTON, Ky. — The U.S. Attorney’s Office says an eastern Kentucky ambulance company has agreed to pay almost $1 million to settle a case over Medicare claims.

The federal government had alleged that Lafferty Enterprises, doing business as Trans-Star Ambulance Services, filed fraudulent claims with the federal Medicare program by using an ambulance to transport patients in Floyd County when it “was not medically necessary” from 2006 to 2012.

The Lexington Herald-Leader reports Trans-Star agreed to pay the government $948,000 and will also have to make “substantial internal compliance reforms” and have claims reviewed by a third party for three years.