A Lexington business is in hot water.

Vital Energy Occupational Therapy and Wellness Center, LLC must pay $200,000 to resolve allegations that it knowingly submitted false or fraudulent claims to Medicare and Medicaid services rendered.

The settlement resolves allegations that Vital Energy violated federal law from November 1, 2013, through April 30, 2016, by submitting bills for individual therapy services when group therapy services were actually provided.

The allegations also state Vital Energy submitted bills for therapy services using former employees’ names and billing numbers when those former employees did not actually provide the therapy services.

Vital Energy denies these allegations.

The allegations resolved by the settlement were brought in a lawsuit filed under the whistleblower provisions of the False Claims Act.

The Act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery.

As part of the resolution, the whistleblower will receive $36,000.

“The False Claims Act exists to protect taxpayer dollars from waste, fraud, and abuse,” said U.S. Attorney Lydon.

“And when health care providers fail to follow the rules, the public bears the cost.”

The settlement was handled by Assistant United States Attorney Brook B. Andrews of the Columbia office.