Attorney General Skrmetti Files Medicaid Fraud Lawsuit against Former Mount Juliet Therapy Clinic

NASHVILLE- Tennessee Attorney General Jonathan Skrmetti announced his office filed a lawsuit against the former owners of Dynamic Therapy Center, LLC, a defunct therapy clinic in Mount Juliet, for defrauding Tennessee's Medicaid program, TennCare.

The lawsuit filed in Wilson County Circuit Court alleges that Karyn Kurth and Michelle Hill, who owned and operated Dynamic Therapy Center from 2020 to 2023, knowingly submitted false claims to TennCare. The defendants are accused of billing TennCare for individual physical therapy, occupational therapy, and speech therapy sessions while actually providing group therapy to children in sessions they called "camps." Since TennCare reimburses individual therapy sessions at higher rates than group sessions, this fraudulent scheme resulted in a substantial number of overpayments to Dynamic Therapy Center.

"Fraudsters who abuse our trust to rip off TennCare are stealing from Tennessee taxpayers and will be held accountable," said Attorney General Skrmetti. "As always, our Office is grateful to fight for Tennessee taxpayers and TennCare patients alongside our partners at the TBI."

The State is requesting recovery of more than $300,000 in fraudulent payments, treble damages as allowed under state law, civil penalties of $14,308 to $28,619 per violation, and additional remedies the court deems appropriate under the Tennessee Medicaid False Claims Act.

The joint investigation by the TBI and Office of the Attorney General's Civil Medicaid Fraud Division began with a referral from TennCare's Office of Program Integrity.

"We're committed to doing our part to protect the tax dollars meant to support our most vulnerable," said TBI Director David Rausch. "This case is another great example of how partnership among law enforcement agencies can work to hold accountable those abusing the TennCare system."

Read the complaint.

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