NC's Medicaid finally gets fraud restitution

Apr. 4—TRIAD — The Department of Justice recently secured $5.2 million that a Greensboro medical transportation provider was ordered almost four years ago to pay in restitution to the North Carolina Medicaid system.

Gate City Transportation Inc. had pleaded guilty in 2018 to one count of health care fraud.

The company once had owned and operated convalescent ambulances, which provide non-emergency transport for clients who are stretcher-bound and typically run between a facility such as a nursing home and a hospital.

In November 2010, GCT stopped operating convalescent ambulances and focused solely on using vans, but the company continued to submit claims to the Medicaid program using ambulance codes in order to receive higher reimbursements.

U.S. Attorney Sandra Hairston of North Carolina's Middle District said in a press release that a total of more than $5.5 million will be paid to the Medicaid program, which includes the restitution of $5.2 million plus interest of more than $300,000. The funds were obtained through seizure and forfeiture of Gate City Transportation assets.

"Securing this restitution means that millions across the state of North Carolina will be able to get the health care they need," Hairston said. "I am very happy that we are able to return the money that was stolen and thankful to the agencies that worked so hard to secure justice in this case."

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