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Attorney General Josh Stein Reaches $150,000 Medicaid Fraud Settlement with Rockingham Health Care Provider

For Immediate Release:
Wednesday, May 17, 2023

Contact: Nazneen Ahmed

(RALEIGH) Attorney General Josh Stein today reached a $150,000 settlement with Compassionate Counseling Services in Rockingham to resolve allegations that the company submitted false claims to the North Carolina Medicaid program. The settlement funds will be returned to the program.

“Health care providers that receive Medicaid resources need to use those resources properly,” said Attorney General Josh Stein. “When providers fail to responsibly steward taxpayer dollars, my office will hold them accountable. I’m grateful to the U.S. Attorney Hairston and her office for their continued partnership to protect health care resources.”

From June 7, 2016, to Jan. 8, 2021, Compassionate allegedly billed Medicaid for diagnostic assessments that were backdated or not properly signed and dated by the required professional. Because of the lack of proper documentation, Compassionate failed to support that the assessments were properly rendered or that the services were necessary.

The civil claims resolved by settlement here are allegations only, there has been no judicial determination or admission of liability, and Compassionate denies the allegations.

The investigation and prosecution of this case was conducted by the United States Attorney’s Office for the Middle District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office.

About the Medicaid Investigations Division (MID)

The Attorney General’s MID investigates and prosecutes health care providers that defraud the Medicaid program, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patients’ private funds in nursing homes that receive Medicaid funding.

To date, the MID has recovered more than $1 billion in restitution and penalties for North Carolina. To report Medicaid fraud or patient abuse in North Carolina, call the MID at 919-881-2320. The MID receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $6,106,236 for Federal fiscal year (FY) 2022. The remaining 25 percent, totaling $2,035,412 for FY 2022, is funded by the State of North Carolina.


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