Prison health care provider Naphcare agrees to settle False Claims Act allegations with over $500,000

Alabama News

BIRMINGHAM, Ala. (WIAT) — Birmingham-based company NaphCare Inc. has agreed to pay over half a million dollars to resolve allegations that the company knowingly submitted false claims to the Federal Bureau of Prisons in connection with health care services provided to inmates.

NaphCare subcontracts with physicians to provide health care services to inmates who reside at BOP facilities throughout the United States and is said to have charged the government for higher-level services than were actually provided. Now, the company is paying the price: $694,593.

“Companies that do business with the government have an obligation to ensure that they charge only for the services they provide,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will hold accountable those who knowingly fail to comply with this obligation and seek taxpayer funds to which they are not entitled.”

The United States alleged that NaphCare submitted inflated claims for evaluation and management services provided by several physicians between January 2014 and June 2020 at BOP’s Terre Haute, Indiana, facility as well as a facility in Victorville, California.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

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