Segal Arts, LLC entered a consent judgment after billing Medicare for individual occupational therapy sessions that were actually group art classes delivered at assisted living and adult day facilities across Pennsylvania and New Jersey.

Segal Arts, LLC — False Billing of Group Art Classes as Occupational Therapy (2026)

Outcome: A Bucks County, Pennsylvania company entered a consent judgment under the False Claims Act after systematically billing Medicare for medically necessary one-on-one occupational therapy services that were actually group arts-and-crafts classes.

Segal Arts, LLC, owned by Irina Segal, operated as a therapy services vendor in assisted living facilities and adult day programs across Pennsylvania and New Jersey. The company submitted Medicare claims for "one-on-one occupational therapy services that were not provided," instead delivering group art classes to residents.

Medicare coverage for occupational therapy requires individualized, medically necessary treatment delivered by or under the direct supervision of a licensed therapist. Group recreational art classes do not meet these criteria. By billing individual OT codes for group activities, Segal Arts submitted fraudulent claims to a federal healthcare program over an extended period.

A consent judgment was entered on March 18, 2026 in U.S. District Court for the Eastern District of Pennsylvania. The U.S. Attorney's Office for the Eastern District of Pennsylvania brought the enforcement action. The specific financial penalty was not disclosed, but the consent judgment includes terms for resolution of the False Claims Act liability.

Primary Source: OIG Enforcement Record