Multi-State Rehab Provider Pays Nearly $5M to Resolve False Claims Act Matter

On March 25, the United States Attorney’s Office for the Eastern District of Michigan announced that Team Rehabilitation Services LLC (“Team Rehab”), a multi-state operator of physical therapy clinics, had agreed to pay just short of $5 million to resolve allegations that it violated the federal False Claims Act (FCA) by submitting claims for one-to-one physical therapy services even though those services occurred in a group setting.

According to the DOJ’s press release, Team Rehab cooperated with the government after learning of its investigation by self-identifying improper claims and implementing additional compliance controls. The settlement was the result of a whistleblower lawsuit filed under the FCA’s qui tam provisions, which permit private whistleblowers to file lawsuits and share in the government’s eventual recovery. The whistleblower will receive over $900,000 as part of the settlement.

The FCA remains the federal government’s top civil tool in investigating and punishing fraud, waste, and abuse, affecting federal healthcare programs. In fiscal year 2025 alone, the DOJ recovered over $5.7 billion in healthcare-related FCA cases, with the vast majority of that ($4.5 billion) the result of qui tam whistleblower lawsuits. From the activity in the first quarter of this year, 2026 looks like it is on pace to be another banner year.

The attorneys at Grubman Warner Berry have years of experience representing healthcare providers in connection with government investigations and litigation, including matters under the False Claims Act. If you need assistance with such a matter, please contact us.