Ambulance Company Settles Medicare Fraud Lawsuit for $5.4 Million

A former employee, Carl Crawley, successfully settled a lawsuit against Rural/Metro of Central Alabama for $5.4 million.

Crawley’s lawsuit alleged that Rural/Metro requested reimbursements of federal money for non emergency ambulance trips by dialysis patients.

Rural/Metro claimed that the patients were bedridden or medically required an ambulance trip. However, Crawley alleged that the ambulance trips by patients were not medically necessary. Medicare regulations only allows reimbursement for ambulance services that are medically necessary for patients whose medical condition requires the use of an ambulance.

The suit was first filed in 2009 by Crawley’s attorney in the United States District Court in the Northern District of Alabama. The suit was filed under the whistleblower provision of the False Claims Act; this means that Crawley sued his former employer on behalf of the U.S. government in order to be repaid the amount that the company wrongfully acquired.

The U.S. government intervened in the lawsuit in March 2011 and helped to investigate the company for wrongdoing.

Crawley will receive a substantial award for calling out the medical services company. The settlement agreement provides Crawley with more than 1 million, in addition to attorney’s fees, which amount to over $200,000.

Crawley’s attorney Henry Frohsin stated that his client should be applauded for bringing the Rural/Metro’s wrongdoing to public light. He further stated “This country needs more heroes like Carl who are willing to sacrifice for what they believe. He deserves to be rewarded.”

Crawley is currently pursuing a degree in criminal justice from an Alabama college.

Leave a Reply

Your email address will not be published. Required fields are marked *