New EnglandNew EnglandMedicaid Fraud

Vermont Health Care Agency to Pay $391,816 to Settle Medicaid Fraud Allegations

Vermont's Attorney General announced a settlement requiring Health Care & Rehabilitation Services of Southeastern Vermont to repay improperly retained Medicaid funds.

The New England Voice StaffMontpelier, Vermont
Stethoscope and law books on a desk in front of the Vermont State House surrounded by autumn foliage at golden hour.
Stethoscope and law books in front of the Vermont State House surrounded by autumn foliage. (The New England Voice)

Vermont's Attorney General's Office announced a settlement on September 16 requiring Health Care & Rehabilitation Services of Southeastern Vermont, known as HCRS, to pay $391,816 to the state following an investigation into its handling of Medicaid funds.

The agreement resolves allegations that the agency improperly retained money it should have returned to Vermont. The investigation was conducted by the Attorney General's Medicaid Fraud and Residential Abuse Unit.

"Misuse of Medicaid funding carries consequences for both patients and taxpayers."
— Attorney General Charity Clark

Along with the payment, HCRS must implement specific compliance measures. The announcement describes a settlement resolving allegations, rather than a criminal conviction.

Attorney General's Statement

Attorney General Charity Clark emphasized that misuse of Medicaid funding carries consequences for both patients and taxpayers. She said the agreement addresses the harm and aims to prevent similar conduct in the future.

Accountability and Oversight

The case places oversight of public health care dollars in focus: accountability includes recovering funds and requiring changes in how agencies handle them. HCRS must now follow compliance measures designed to prevent similar misuse going forward.

Source: Vermont Attorney General's Office, September 16, 2026.