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The U.S. Justice Department has accused RehabCare Group Inc. of paying more than $10 million in kickbacks to gain access to Medicare and Medicaid patients in Missouri nursing homes.

According to a civil lawsuit transferred last week to U.S. District Court in St. Louis, Clayton-based RehabCare began making payments in 2006 to induce a Missouri nursing home chain to grant RehabCare a contract to provide therapy services.

RehabCare’s revenue-sharing arrangement with the nursing home owner — Sikeston, Mo.-based Health Systems Inc. — defrauded the federal Medicare and Medicaid programs of millions of dollars, federal investigators allege.

Justice Department officials use the federal anti-kickback statute, which forbids paying others for referrals of Medicare and Medicaid patients, as a critical tool in fighting health care fraud and holding down costs in federal health programs.

The lawsuit, originally filed under seal by a whistleblower in Minnesota and joined last year by the U.S. government, provides details of a long-running federal probe into RehabCare’s business dealings in Missouri.

RehabCare lawyers say the government’s accusations do not contain sufficient details to support the accusation that the revenue-sharing scheme comprised illegal kickbacks.

“The government’s substantive kickback allegations – absent the conclusory allegations, legal conclusions and innuendo – are rather threadbare,” RehabCare’s lawyers said in court papers.

Named as defendants are RehabCare Group, Health Systems Inc., and its affiliate, Rehab Systems of Missouri LLC, which previously provided therapy services to Health Systems nursing homes. No individuals are named.

Until recently, Clayton was the headquarters for RehabCare. Last year, RehabCare was purchased by Louisville-based Kindred Healthcare Inc.

“We deny and intend to vigorously defend against these allegations,” Susan Moss, a Kindred spokeswoman, said in a written statement.

Scott Hinkle, general counsel for Health Systems, declined to comment on the pending litigation.

According to federal investigators, the alleged kickbacks involved a tangled web of ownership and lucrative business ties. RehabCare “has received in excess of $70 million in revenue from the transaction since it closed in 2006,” according to the government’s complaint.

Investigators from the FBI and Office of Inspector General at the Department of Health and Human Services say that RehabCare crafted an illegal arrangement with Health Systems and Rehab Systems. The deal, investigators allege, included a one-time, $600,000 payment from RehabCare to Rehab Systems, as well as an ongoing 30 percent cut of federally financed therapy services, which was split between Health Systems and Rehab Systems.

RehabCare, in exchange, was granted a five-year contract to provide therapy services to nursing home patients of Health Systems.

In all, Rehab Systems recorded profits of more than $10 million from the nursing home contract, even though the limited liability company “has not had a single full-time employee … conducts no operations … and provides nothing of value to the nursing homes and no legitimate services to RehabCare,” investigators allege.

Talks between the three companies started in 2003. Seeking to increase its market share in Missouri nursing homes, RehabCare entered negotiations that included purchasing Rehab Systems from Health Systems, which was owned by James Lincoln. Lincoln also had an ownership stake in Rehab Systems.

According to the government, those talks stalled when negotiators voiced concerns that the deal could violate the anti-kickback law. That’s because RehabCare’s five-year contract with Health Systems was made contingent on its willingness to also purchase Rehab Systems.

In 2006, the parties agreed to a contract that did not involve an acquisition. RehabCare began providing therapy services to Health Systems’ nursing homes, effectively displacing Rehab Systems — but only on the condition that Rehab Systems get a cut of RehabCare’s revenue, even while Rehab Systems did none of the work, investigators allege.

According to court papers, Lincoln owns about 60 nursing homes in Missouri. Rehab Systems was co-owned by Lincoln, his son Jimmy Lincoln, and manager Tom Hudspeth.

In February 2006, RehabCare made a one-time payment of about $600,000 to Rehab Systems, federal investigators allege. The payment “created a financial windfall to Hudspeth,” who had a financial stake in Rehab Systems, but no ownership stake in Health Services or the nursing homes, investigators say.

They also say that RehabCare charged Health Systems only 70 percent of the Medicaid reimbursement amount — while Health Systems billed the government for the full amount. Health Systems and Rehab Systems split the difference of the remaining 30 percent.

Justice Department officials say that the $600,000 payment and the profit received by Rehab Systems amount to illegal kickbacks. Federal law forbids the payment or acceptance of “any renumeration” for referrals of patients for federal health care services.

In court papers, RehabCare lawyers acknowledged that the company made a payment to Rehab Systems, but differed over the amount. The company paid a $405,765 “recruiting fee” to Rehab Systems, and insist that the payment represents “reasonable consideration and fair market value,” the company’s lawyers assert in court records.

The case began in 2007 as a whistleblower lawsuit, filed under seal by a RehabCare competitor, Minnesota-based Health Dimensions Rehabilitation Inc. RehabCare has contracts with about 50 nursing homes in Minnesota.

After conducting an investigation, the Justice Department decided in December to join the lawsuit. The case was transferred to St. Louis because most of the relevant events took place in Missouri and key witnesses are located here.

The suit accuses RehabCare and the other defendants of filing false Medicare and Medicaid claims and of making or using false records or statements to support those claims. The Justice Department has asked for the defendants to pay treble damages plus civil penalties of as much as to $50,000 per every false claim. But the outcome of such cases is usually a settlement.

“There were many claims filed,” said Assistant U.S. Attorney Chad Blumenfield of Minneapolis.

He said that one purpose of the anti-kickback statute is to control costs by discouraging the payment of referral fees for health services. It also encourages providers to make health care decisions “based on what’s in the best interest of patients, rather than the best financial interests of the nursing home or the therapy company.”

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You’re not normally one to let your personal life interfere with work, but when you’re ducking out of the office a few times a week to take Dad to dialysis or your kid to physical therapy, it’s tough to get everything done to your usual standard.

Perhaps you need a break from juggling. Thanks to the federal Family Medical Leave Act (FMLA), you may be entitled to up to 12 weeks of unpaid time off per year to tend to certain family-care needs. More workers took advantage of this right in the past year, a recent Towers Watson survey found.

"As the economy picked up, people felt more comfortable asking for time away to deal with personal matters," explains Tom Billet, a senior consultant at the firm. Should you find yourself needing a respite to focus on family, take these steps to ease the transition.

Know your rights

To qualify for FMLA leave, you must have worked for a company with 50 or more employees for at least a year and put in 1,250 hours in that time. FMLA applies if you, a parent, child, or spouse develops a serious illness, sustains a major injury, or requires ongoing medical treatment.

Other eligible circumstances: births, adoptions, and the deployment or recuperation of a military family member. The law guarantees that your position will be restored when you return. Health coverage continues while you’re away, but you probably won’t accrue vacation or retirement benefits.

More men choosing kids over career

See if you afford it

Before putting in for leave, be sure you can manage without the income. Don’t have several months’ expenses banked in an emergency fund? Use paid vacation first.

For your own ailments, exhaust sick days; also inquire about short-term disability. Should your relative only require intermittent care, take the leave, but work a few days on, a few days off to keep cash coming in.

Get buy-in from the boss

You can’t be fired for taking FMLA leave, but the way you manage this process can affect the way your employers view you — and your promotability. So be proactive.

Start by explaining the situation to your boss (you’ll be required to provide proof). Specify how much time off you’ll need, and ask what you can do to lessen workflow disruption.

"Problems arise when people take leaves in dribs and drabs," says Las Vegas employment lawyer Mary Chapman. "It’s harder for HR to keep track, and co-workers inherit a larger workload."

Best to make the leave as predictable as possible. For example, schedule appointments for Junior’s physical needs at the same time each week. Also, open up to co-workers about what you’re dealing with, advises Christopher Metzler, a human resources professor at Georgetown. Otherwise, your empty chair may raise eyebrows — and questions about whether you’re slacking.

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Please remember that a payday loan is a rather expensive line of credit. Much like taking something to the pawn shop.

The Citizens Utility Board is pushing for a cut in Ameren Illiniois’ rates to exclude $42.8 million in spending, including hundreds of thousands of dollars for branding, corporate sponsorships, lobbying and athletic events.

Ameren Illinois in March filed a proposal with the Illinois Commerce Commission that would initially reduce electric rates across its service territory by $19.5 million.

But in testimony filed with the ICC, the Chicago-based consumer group said the reduction in electric delivery rate should go further.

“Ameren’s proposal doesn’t even come close to giving its customers the upfront decrease they deserve,” CUB Executive Director David Kolata said.

The rate proposal filed earlier this year is part of Ameren’s 10-year plan to spend $625 million to improve the power grid and install so-called smart meters.

The grid modernization plan was authorized in a bill approved by the legislature last year. The sweeping measure also established a formula for setting future electric rates in Illinois.

The ICC is expected to adjust Ameren’s rates in October.

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While the debate over "QE3" continues within the Federal Reserve, it seems more policymakers are leaning away from supporting further stimulus.

At the central bank’s last policymaking meeting, Fed officials continued to discuss whether they should buy more assets in a third round of quantitative easing, commonly known as QE3.

But only "a couple" members were in favor of more stimulus, as opposed to two months earlier, when a "few" did so.

"A couple of members indicated that the initiation of additional stimulus could become necessary if the economy lost momentum or if inflation seemed likely to remain below its mandate consistent rate of 2% over the medium run," minutes released Tuesday said.

The Fed’s language on the overall economy also seemed more upbeat than in January, pointing to "encouraging" jobs data.

Since the financial crisis, the Fed has purchased $2.3 trillion in Treasuries and mortgage debt in the first two rounds of quantitative easing. The intent is that these policies will bring interest rates lower, boosting the economy by giving businesses and consumers access to cheaper credit.

Some members have recently indicated that by buying more mortgage backed securities, the Fed may be able to give a bigger boost to the struggling U.S. housing market.

Others have pointed to stronger jobs data as a sign that the economy is healing on its own, and may not need further assistance from the Fed.

Richmond Fed President Jeffrey Lacker was the only member of the central bank’s 10-person Federal Open Market Committee voting against the use of language that specifies interest rates will likely remain low until the end of 2014.

He believes the economy will heat up enough to warrant a hike in interest rates before then. 

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The number of Americans claiming new unemployment benefits dropped to a four-year low last week, offering further evidence the jobs market recovery was gaining traction.

Initial claims for state unemployment benefits fell 5,000 to a seasonally adjusted 348,000, the lowest level since February 2008, the Labor Department said on Thursday.

The prior week’s figure was revised up to 353,000 from the previously reported 351,000. Economists polled by Reuters had forecast claims rising to 354,000 last week.

The four-week moving average for new claims, considered a better measure of labor market trends, declined 1,250 to 355,000.

The claims data covered the survey week for March nonfarm payrolls. Claims dropped 5,000 between the February and March survey periods, suggesting another month of solid job gains.

“That’s another indication that the labor market is healing. That’s good news for the March payroll report,” said Gus Faucher, a senior economist at PNC Financial Services in Pittsburgh.

“We are looking at net job growth of 200,000, which will be another good month. On the labor front, we have dug a deep hole but we seem to be digging out of it.”

Employers added 227,000 jobs to their payrolls in February, taking the tally for the past three months to 734,000. The unemployment rate currently is at 8.3 percent, having dropped 0.8 percentage point since August payday loan.

The Federal Reserve has said it expects the jobless rate to “gradually” decline.

U.S. Treasury debt prices fell on the data and the dollar extended gains against the euro. U.S. stock index futures held their losses as investors worried about slowing growth in China.

A Labor Department official said there was nothing unusual in the state-level data and that only two states - Alaska and Minnesota - had been estimated.

The department next week will introduce new seasonal factors for 2012 and revisions for claims data from 2007 through 2011.

The number of people still receiving benefits under regular state programs after an initial week of aid fell 9,000 to 3.35 million in the week ended March 10, the lowest since August 2008.

Despite the improving labor market picture, long-term unemployment remains a major problem and about 43 percent of the 12.8 million out of work Americans in February had been jobless for more than six months.

The number of Americans on emergency unemployment benefits dropped 24,312 to 2.85 million in the week ended March 3, the latest week for which data is available.

A total of 7.28 million people were claiming unemployment benefits during that period under all programs, down 142,499 from the prior week.

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Is the muni party over? Is the hangover about to begin?

Maybe. So, let’s take a look at prospects for one of the favorite investment havens of widows and orphans.

The past year was a lovely year for widows and orphans with money. They made more of it.

Conservative investments – bonds and dividend stocks – outshone sexier choices. And the homeliest wallflower of all, municipal bonds, turned into a star.

Long-term muni bond funds are up an average of 14 percent over the 12 months ending Thursday. Intermediate munis are up almost 10 percent and high-yield munis are up nearly 16 percent, according to Morningstar.

Those topped the one-year returns for the vast majority of stock and bond mutual funds classes. The worm has since turned, however, with domestic stocks showing higher gains over the past three months.

The question now is whether munis have run their course, at least for a while, and whether the risk-shy investor should look elsewhere.

“Few believe you can get the same kind of return as you got last year and the year before,” says Patrick Early, muni analyst at Wells Fargo Advisors, downtown. “If you’ve seen several years of upticks in munis, ask ‘Should I lighten up some?’”

Munis last year prospered on the soothing of fear. The year began just after star analyst Meredith Whitney — she who predicted the Citibank disaster of 2007 — turned prophet of doom for munis, warning of “hundreds of billions” of dollars in defaults on the way.

The muni market is dominated by mom and pop investors, not institutions. Mom and pop followed the prophet and fled for the hills.

Down went muni prices and up went yields in late 2010 and early 2011. A glut of new muni issues hit the market about the same time, pushing prices down and feeding the panic.

That turned out to be a buying opportunity. Whitney’s prophesy did not come to pass, and by mid-year, the panic had faded and munis were on a roll.

Most of the past year’s gain came from price recovery, not interest yield, as Morningstar analyst Miriam Sjoblom noted in a commentary last month. For instance, the Vanguard Long-Term Tax-Exempt fund gained 10.7 percent in 2011. But 60 percent of that was the gain in price, not interest payments.

As price went up, interest yields got skimpier. That fund now has an SEC yield of 2.5 percent (a yield defined by Securities and Exchange Commission). Its intermediate-term sister fund yields 1.8 percent.

It’s hard to imagine yields going much lower, and that limits the upside on price. Looking forward, it would seem that the best investors might expect is that skimpy interest yield. (Of course, muni interest is exempt from federal income taxes.)

Muni investors are risk-shy as a rule, and that’s also reflected in today’s market.

“Super high quality” bonds, such as State of Missouri general obligation bonds are probably overvalued, says Brian Musielak manager of the Commerce National Tax Free Fund in Clayton.

Those looking for higher yields are going to have to crawl out farther on the limb.

“You have to go down in credit quality and take some risk,” says Musielak.

And you may not get much for it. Vanguard’s High Yield Tax Exempt fund yields all of 2.94 percent, using the calculation method blessed by the SEC.

There are other worries as well. Credit rating agencies recently have been downgrading more bonds than they upgrade. That’s a minor negative, considering that muni defaults are still rare events in the investment-grade bond market.

A possible bigger worry involves supply and demand. State and local governments have been shrinking as their tax base shrivels. So, they haven’t launched a lot of new projects that would require bond financing. The supply of new bonds was a third below normal last year.

The dearth of bond supply helped hold prices up and yields down. That will change eventually, although no one is sure when.

Muni investors also share the fear of all bond fund investors – dreaded prosperity. The economy is picking up a bit, and eventually that will mean higher interest rates and lower bond prices.

The Fed predicts it will keep short-term rates near zero until 2014, although that falls short of a promise. The Fed might also use its heft to keep intermediate and long-term rates tame, as it’s done in the recent past.

Still, bond investors should be ready to hot-foot it out if the economic news gets too good.

If, after all that, you’re still interested in Munis, here are some top fund picks from Morningstar.

Among long muni funds: Fidelity Municipal Income, Fidelity Tax-Free Bond and Franklin Federal Tax-Free Income.

Among intermediate-term funds: Morningstar likes Fidelity Intermediate Municipal Income.

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Hong Kong Chief Executive candidate Henry Tang pledged to boost government spending to tackle a widening wealth gap as he sought to reverse a slump in public support ahead of this month

Chesterfield-based Aegion Corp. reported fourth-quarter net income of 15.2 million, or 38 cents per share, compared with $17.4 million, or 44 cents a share, in the corresponding period a year ago. Quarterly revenue rose to $256.7 million, compared with $246 million a year earlier.

Since October, Aegion has been the parent company of Insituform Technologies Inc. The company specializes in sewer and drinking water system renovation.

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China, the biggest supplier of rare earths, may almost double exports this year and meet quotas set by the government as lower prices stimulate demand.

Chinese exports were 49 percent of the government-alloted quota in the first 11 months of last year because the slowing global economy sapped demand, the Ministry of Commerce said in a Dec. 27 statement. Overseas sales quotas may be virtually unchanged this year at 31,130 metric tons, based on Bloomberg calculations.

Chinese Premier Wen Jiabao said the nation should take preemptive measures and start