Ancillary care company will pay $4.5 million to settle fraud charges

A Michigan company that provides ancillary services to nursing homes has agreed to pay $4.5 million to settle allegations that it improperly billed Medicare for services.

The Troy, MI-based Mobile Medical — operating as OnSight Healthcare — was sued by a whistleblower in 2010 for allegedly billing Medicare for services and equipment that were worth less than the company claimed, were not subject to reimbursement or were never provided. The company provides dental, podiatric, vision and hearing services to nursing homes in Michigan, Ohio, Pennsylvania, New York, Kentucky and Indiana.

The lawsuit also claimed that OnSight provided kickbacks to nursing homes in exchange for referrals, and allowed nursing homes to sell phony warranties on eyeglasses, dentures and hearing aids.

OnSight denied wrongdoing, but paid $1.05 million on December 16 as a down payment on the settlement. The company will pay the remaining $3.5 million over the next five years.