Kindred Healthcare in $125 mln settlement with U.S. govt

Jan 12 (Reuters) - Kindred Healthcare Inc has agreed to pay $125 million to settle government allegations that it knowingly caused skilled nursing facilities to submit false claims to Medicare, the U.S. Department of Justice said on Tuesday.

The accord resolves claims against Kindred and contract therapy providers RehabCare Group Inc and RehabCare Group East Inc, which Kindred bought in 2011, the Justice Department said.

(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama)

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