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August 1, 2023

Leominster ambulance company settles false billing allegation for $2.6M

Photo\Flickr\Dave Kekish MedStar Ambulance faces allegations of false claims.

MedStar Ambulance, along with its parent company Critical Systems, reached a $2.6-million settlement with the Massachusetts Attorney General’s Office over allegations of false MassHealth submissions.

MassHealth is the state’s Medicaid program.

The Attorney General’s office claims the ambulance company and Leominster-based affiliates – Fitchburg Emergency Medical Services, MedStar EMS, MetroWest Emergency Medical Services, and Pioneer Valley Emergency Medical Services – submitted claims to MassHealth for emergency ambulance services when a nonemergency level of service was actually provided, according to a Tuesday press release from the office of Attorney General Andrea Campbell.

The AG’s office alleged the company failed to follow MassHealth regulations concerning the handling of documents related to ambulance services.

“The MassHealth program only works when providers play by the rules – and my office will continue to hold those who don’t accountable,” Campbell said in the press release. “By doing so, we can and will protect the integrity of MassHealth and ensure its purpose to provide crucial health care support for the most vulnerable remains intact.” 

MedStar provides services in multiple cities and towns in Central and Western Massachusetts, including Fitchburg, Leominster, Worcester, Chicopee, and Northampton.

In 2017, MedStar agreed to pay $12.7 million for overbilled Medicare claims after a whistleblower came forward with allegations of false claims by the company.

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