8 indicted for illegal Medicaid, Medicare kickback scheme
Posted: 01.24.2012 at 8:46 PM

LUDINGTON -- Eight people have been named in a federal indictment in connection with an illegal health care kickback scheme. The United States District Court filed an indictment today against Babubhai Rathod of Ingham County and seven of his employees including several doctors.

Rathod is the owner of numerous medical offices, outpatient rehabilitation clinics and home health care companies in Northern Michigan, including Lakeshore Spine and Pain and U.S. Rehabilitation Services, both in Ludington.

The federal indictment claims the group conspired to get rich by paying and receiving kickbacks for referring Medicare and Medicaid patients for electro-diagnostic testing, physical therapy and home health care services that were submitted to the government for payment.