BOSTON (AP) — Federal prosecutors say a Maine elderly living center has agreed to pay $1.2 million to settle allegations of inflated Medicare claims for rehabilitation therapy.

The U.S. attorney’s office in Boston says Ross Manor in Bangor failed to prevent a subcontractor, RehabCare Group East, Inc., from engaging in a pattern and practice of providing high levels of therapy that were not reasonable or necessary.

U.S. Attorney Carmen Ortiz skilled nursing facilities should provide care based on patients’ clinical needs and not tied to the financial targets of the companies providing that care.

This settlement resolves allegations that Ross Manor failed to prevent other RehabCare practices designed to inflate Medicare reimbursement.

Ross Manor did not immediately respond to email or telephone messages Tuesday.

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