Encompass Health: Facilities Across the Country Misusing Neurological Diagnosis to Increase Medicare Payments; Conduct Echoes Those Highlighted in 2019 DOJ Settlement

Published on Jul 25, 2025

In 2019, Encompass Health (EHC), the country’s largest operator of inpatient rehabilitation facilities (IRF), entered into a settlement with the Department of Justice for $48 million to resolve allegations that its hospitals falsely diagnosed patients to increase Medicare payments and enrolled patients unsuitable for rehabilitation therapy.

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