Stern Therapy Consultants Agrees to $315K False Claims Act Settlement for Medicare Fraud

Stern Therapy Consultants, a New York-based long-term care therapy provider, has agreed to pay $315,000 to resolve allegations that it conspired to cause the submission of false claims to Medicare for medically unnecessary skilled nursing facility therapy services. The settlement resolves a False Claims Act complaint filed in February 2025 by federal and Massachusetts authorities, which alleged that therapists billed for high-level services even after patients had refused or were unable to perform those services.

According to the agreement, Stern admitted that its Senior Regional Director certified that terminated staff members completed therapy services, even without confirming whether those services actually occurred, to justify billing at the highest reimbursement level. The allegations against Stern were brought under the qui tam whistleblower provision of the False Claims Act, and the relator will receive approximately $61,875 from the settlement. While Stern’s payment resolves the company’s liability, the government’s case against co-defendants — including RegalCare Management Group and its owners — remains ongoing.