Press Release  AG's Office Reaches Settlement With Swampscott-Based Medical Transportation Company To Resolve False Billing Allegations

BOSTON — The Massachusetts Attorney General’s Office (AGO) has reached a settlement with RM Transportation, Inc. (RM Transport), a Swampscott-based medical services transportation provider, to resolve allegations that the company billed MassHealth for transportation services that it did not provide.  

As part of the settlement, RM Transport will pay $380,000 to the Commonwealth and will implement a three-year independent compliance monitoring program at its own expense. The compliance program will result in updated policies and procedures to ensure compliance with MassHealth requirements, along with trainings for staff on the updated policies and procedures, and annual record and on-site audits.   

RM Transport provides non-emergency transportation services, brokered through the Montachusett Regional Transit Authority (MART), for MassHealth members travelling to MassHealth-covered services, including substance abuse treatment centers. 

The AGO alleges that RM Transport knowingly submitted false claims to MART for services it did not provide to MassHealth members, including submitting claims for instances when relevant medical facilities were closed, when the members had take-home Methadone doses and were not going to the Methadone clinic, and when medical services for MassHealth members had concluded. The AGO asserts that the alleged conduct constituted violations of the Massachusetts False Claims Act and the Medicaid False Claims Statute. 

This matter was handled by Assistant Attorney General Mary-Ellen Kennedy, Investigations Supervisor Dean Bates, Senior Health Care Fraud Investigator William Welsh, and Health Care Fraud Investigator Kathleen Tansey, all of the AGO’s Medicaid Fraud Division.

This matter is representative of the AGO’s ongoing efforts to hold accountable those who misuse roles of authority or public trust, including through abuse of the MassHealth program. Earlier this year, the AGO reached a $1.6 million settlement with two North Dartmouth ambulance companies to resolve MassHealth false billing allegations.

The AGO’s Medicaid Fraud Division is a Medicaid Fraud Control Unit, annually certified by the U.S. Department of Health and Human Services to investigate and prosecute health care providers who defraud the state’s Medicaid program, MassHealth. The Medicaid Fraud Division also has jurisdiction to investigate and prosecute complaints of abuse, neglect and financial exploitation of residents in long-term care facilities and of Medicaid patients in any health care setting. Individuals may file a Medicaid/MassHealth fraud complaint or report cases of abuse against patients in long-term care facilities by visiting the AGO’s website. 

The Massachusetts Medicaid Fraud Division receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $5,922,320 for federal fiscal year 2025. The remaining 25 percent, totaling $1,974,102 for FY 2025, is funded by the Commonwealth of Massachusetts.

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