LAFAYETTE, La. (KLFY) The Lafayette Physical Rehabilitation Hospital and Acadiana Management Group LLC has agreed to pay $1.2 million to resolve allegations that it violated the False Claims Act by causing the submission of claims to Medicare for rehabilitation therapy services that were not necessary.

The case began in 2017 when whistleblowers reported that Dr. Carolyn Smith was submitting false medical claims through Medicare for patients who did not meet the applicable criteria for the services.

Today, the civil suit was settled, and in addition to the $1.2 million, Smith must pay $575K.

U.S. Attorney Brandon Brown applauds those who stepped up and said something.

“This was no mistake and we are pretty pleased with the settlement agreement. We are glad to get it over.”

Brown says false claims are a common occurrence all over the United States.

He says his office will aggressively pursue actions when they notice violations.

Today he gives medical providers advice on how to appropriately help their patients out while also making them aware of what could happen if they take advantage of the limited resources available.

“You have to do your due diligence. Not only prescribing them the correct medicine but when Medicare and Medicaid opportunities arrive you do right by the patient. Also, do right by the federal government because there are only limited recourses for these programs.”