Massachusetts AG Settles with RM Transportation Over False Billing Claims

Massachusetts Attorney General's Office Settles with RM Transportation for False Billing Allegations
BOSTON — The Massachusetts Attorney General’s Office (AGO) has announced a significant settlement with RM Transportation, Inc., a medical transportation provider based in Swampscott. This settlement addresses allegations that RM Transportation submitted false billing claims to MassHealth for transportation services that were never rendered.
As part of the resolution, RM Transportation will pay a total of $380,000 to the Commonwealth of Massachusetts. Additionally, the company will implement a comprehensive three-year independent compliance monitoring program at its own expense. This program aims to enhance their operational policies and procedures to ensure strict adherence to MassHealth requirements. It will include staff training on updated protocols and annual audits, both on-site and of their records.
RM Transportation specializes in non-emergency medical transportation services, which are coordinated through the Montachusett Regional Transit Authority (MART). These services are primarily for MassHealth members traveling to essential healthcare services, including substance abuse treatment facilities.
The AGO alleges that RM Transportation knowingly submitted false claims for services not provided to MassHealth members. Specific instances cited include claims for transportation when medical facilities were closed, when patients had take-home Methadone doses and were not visiting clinics, and when medical services for members had already concluded. Such actions are considered violations of both the Massachusetts False Claims Act and the Medicaid False Claims Statute.
This case was managed by Assistant Attorney General Mary-Ellen Kennedy, along with Investigations Supervisor Dean Bates, Senior Health Care Fraud Investigator William Welsh, and Health Care Fraud Investigator Kathleen Tansey, all part of the AGO’s Medicaid Fraud Division. This settlement exemplifies the AGO’s commitment to holding accountable those who exploit public trust and authority, particularly in relation to the MassHealth program.
Earlier this year, the AGO also reached a $1.6 million settlement with two ambulance companies in North Dartmouth for similar false billing allegations. The Medicaid Fraud Division operates as a Medicaid Fraud Control Unit, certified annually by the U.S. Department of Health and Human Services, to investigate and prosecute healthcare providers who defraud the state’s Medicaid program. They also investigate complaints of abuse and neglect in long-term care facilities.
Individuals can report Medicaid/MassHealth fraud or abuse in long-term care facilities through the AGO’s website. The Massachusetts Medicaid Fraud Division receives 75% of its funding from federal sources, totaling $5,922,320 for the fiscal year 2025, with the remaining 25% funded by the Commonwealth of Massachusetts.