Kindred Healthcare to pay $125 million to settle US allegations over therapy services

Kindred Healthcare Inc. agreed to pay $125 million to settle federal allegations it provided unnecessary therapy services to nursing-home patients as part of a scheme to overbill the federal Medicare program, according to the agreement finalized on Tuesday. Several nursing homes that hired Kindred's therapy unit, RehabCare, to provide services to their residents separately agreed to pay the federal government about $8 million for their role in the alleged scheme. Kindred said it agreed to the settlement to avoid costly and distracting litigation, but denied wrongdoing. A Kindred spokesman didn't respond to a request for comment Tuesday. [Subscription Required]