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Attorney general returns another $3.3 million in Medicaid fraud recovery to General Fund

RICHMOND (October 23, 2012) -- Attorney General Ken Cuccinelli announced today that, as a result of an investigation by his Medicaid Fraud Control Unit, he will turn over a check to the General Fund later this month for nearly $3.3 million, which represents Virginia's share of proceeds from a settlement between Marion, Va.-based Medicaid provider Universal Health Services Inc. (UHS) and Virginia and the United States to settle allegations of Medicaid fraud.

UHS received Medicaid funds to provide psychiatric counseling and treatment for boys aged 11 to 17 years old. This settlement resolves a whistleblower lawsuit filed by former therapists at the closed facility.  The lawsuit alleged that the defendants provided sub-standard care to adolescents in violation of federal and state Medicaid requirements, falsified records to cover up their serious violations and filed false Medicaid claims.  Under the federal False Claims Act, a health care provider that submits false or fraudulent claims to a federal health care program is liable for three times the government's damages, plus a civil penalty for each false claim.  The penalty is the same under the state False Claims Act.

This is the third largest Medicaid fraud recovery returned to the commonwealth's General Fund since August. On August 28, the attorney general announced to state legislators that Virginia's MFCU would turn over a check to the General Fund for $8.6 million, which represented Virginia's share of proceeds from a global settlement between pharmaceutical company GlaxoSmithKline (GSK), the Commonwealth of Virginia, the United States, and other state governments to settle allegations of Medicaid fraud.  On October 5, the attorney general announced that he would turn over a check to the General Fund for nearly $4 million, which represented Virginia's share of proceeds from the civil recovery portion of a settlement with pharmaceutical company Abbott Laboratories to settle allegations of off-label marketing of its drug, Depakote.

The attorney general acknowledged the efforts made by his office's Medicaid Fraud Control Unit, the U.S. Attorney's Office for the Western District of Virginia, the Civil Division of the Justice Department, and the Department of Health and Human Services' Office of the Inspector General.

"This settlement returns a substantial sum to the General Fund; money which was defrauded from the taxpayers and those truly in need of medical care," said Cuccinelli. "My office will continue its commitment to protecting Virginia's most vulnerable citizens"

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A copy of this news release may be found on the attorney general's web site here.

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