Arizona awards contract to company that allegedly overcharged feds

The exterior of the Arizona State Prison in Florence.

The Arizona Department of Corrections announced Friday it awarded a prison health care contract to NaphCare, an Alabama based health care provider that settled with the United States Department of Justice over allegations of overcharging clients in 2021.

In a statement, the department said NaphCare was founded in 1989 and has provided health care services to the Pima County Sheriff’s Office since August 2021. NaphCare currently provides health care services to local, state and federal clients in 32 states, the statement said.

In that 2021 settlement, NaphCare agreed to pay nearly $700,000 after allegations the company had violated the False Claims Act by overcharging Federal Bureau of Prisons facilities. 

“The United States alleged that NaphCare submitted inflated claims for evaluation and management services provided by several physicians at BOP’s Terre Haute, Indiana, facility between January 2014 and June 2020,” the Department of Justice said in a statement at the time of the settlement.