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Precedence: ROUTINE Date: 04/28/1998

To: Boston

 

From: SAI I

 

 

 

 

 

 

 

 

 

 

 

 

Bedford RA gig
Contact:
Approved By: I
Drafted By: :ljc
Case ID 
Title: LAKEVILLE NEUROREHABILITATION CENTER,
formerly MEDICO,
Effingham Falls, 
HCF be
b7c
Synopsis: Contact with SA (C44) regarding

 

 

 

captioned matter.

Enclosures: Attached to this EC are LHM's relating to the NEW

 

 

 

 

MEDICO investigation (file number - :1uding a
letters, dated 10/19/1994, by AUSA and
05/05/1995, by U.s. Attorney n16 attached is a
closing LHM, dated 10/18/1995, SA and a synopsis

 

 

-relating to the NEW MEDICO facility known as HIGHWATCH
REHABILITATION CENTER (currently known as LAKEVIEW
NEUROREHABILITATION CENTER).

Details: On 04/07/1998, the writer contacted SA

regarding captioned matter as it rp1arac +n the
closed NEW MEDICO anesticrat'inn to which SAI had
been assigned. SA advised that LAKEVIEW
NEUROREHABILITATIO CENTER was previously known as HIGHWATCH
REHABILITATION CENTER when it was owned by NEW MEDICO. She
stated that NEW MEDICO, which is no longer in existence, had
owned approximately 40 facilities located in 15 states. An eight
day search warrant was executed at NEW main facility
located in Lynn, MA, on 10/22/1992. A search warrant was also
conducted at NEW administrative office located in
Goshen, NY, on 10/22/1992.' After receiving information that
HIGHWATCH was shredding records at that facility, she stated that
a search warrant was executed at HIGHWATCH on 12/22/1992,
relating to administrative and patient records. She stated that
several interviews were also conducted at HIGHWATCH pursuant to
the search warrant Tn dition to allegations of fraudulent
billing, SA stated that there were al egations
of patient ab se and neglect. She added that was an

 

 

 

 

 

 

 

 

 

at HIGHWATCH at that time in 1992. SA

 

 

 

advised that patients at HIGHWATCH received health
care benefits primarily through private insurance carriers with

 



Case ID Serial 4

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few patients receiving Medicare benefits.

 

SA advised_that an extensive
investigation regarding NEW MEDICO revealed considerable
indication of fraud and abuse within the NEW MEDICO organization.

However, she stated that there did not appear to be sufficient 
evidence to support proof beyond a reasonable doubt of criminal bf
intent on the part of the senior officials of the organization. b?c
Therefore, she stated that the United States Attorney?s Office,

District of Massachusetts, declined prosecution of the

corporation and its senior officials. 'This declination is

documented in the LHM, dated 05/05/1995, by U.S. Attorney I