Clarksville Pediatric Therapy Clinic Agrees to $300K False Claims Act Settlement Over TRICARE Billing

A Clarksville, Tennessee pediatric therapy clinic has agreed to pay $300,000 to resolve allegations that it violated the False Claims Act through improper billing practices involving TRICARE, the federal healthcare program serving military members and their families. According to the U.S. Attorney’s Office for the Middle District of Tennessee, Pitts Therapies, LLC, doing business as Cornerstone Pediatric Therapies, allegedly submitted improperly coded claims for therapy services between 2020 and 2025.

Federal investigators alleged that the clinic billed TRICARE for multiple units of billing codes when only one unit was permitted and improperly “unbundled” certain services by billing separately for procedures that should have been combined under a single payable code. The government contended that these billing practices resulted in false claims submitted to the federal healthcare program, ultimately leading to the settlement agreement. The allegations were investigated by the Defense Criminal Investigative Service with assistance from the Army Criminal Investigation Division.

The settlement highlights the government’s ongoing focus on healthcare fraud and False Claims Act enforcement, particularly in cases involving federal healthcare programs like TRICARE. It also serves as a reminder that providers must ensure billing practices comply with federal reimbursement rules and coding requirements to avoid liability and enforcement action.