In a whistleblower case, a Birmingham-based network of walk-in medical clinics must pay the federal government $1.2 million to settle charges it was knowingly charging too much, according to recently unsealed records.

The government alleges American Family Care, with about four dozen clinics in four states, siphoned off millions of dollars by "upcoding" -- or entering codes on billing statements that brought higher reimbursements than the health care work warranted.

American Family Care was started in Birmingham in 1982 by Bruce Irwin and now has clinics in Alabama, Georgia, Tennessee and Florida.

Federal agencies became involved in the "upcoding" case because federal money was at stake.

Anita Salter, a claims processor who blew the whistle, gets 18 percent, or $204,00,0 of the $1.2 million settlement, said her lawyer Don McKenna.

"She was in charge of billing and coding when she observed what was being done," McKenna said. "She attempted to bring it to a halt and was terminated."

According to the allegations in her complaint the submissions of "false and fraudulent patient claims" obtained "millions of dollars in payments from Medicare, Medicaid, TRICARE and CHAMPUS."

"She filed suit under the false claims act and the government intervened as to the upcoding claims," McKenna said.

Irwin, who was not named as a defendant in the case, could not be reached for comment. Doug Centeno, the lawyer representing American Family Care, issued a statement from the company:

"American Family Care has denied engaging in any illegal conduct or wrongdoing whatsoever. American Family Care has agreed to pay the settlement amount without any admission of wrongdoing in order to resolve the allegations and to avoid the uncertainty and expense of further investigation and possible protracted litigation with the Department of Justice."

Billing codes record what happened at the office, how long the doctor spent and how complicated the visit was.

"The higher the code the more money they get," McKenna said.

Patients can learn what the codes are at the Family Practice notebook. If the code recorded by the medical facility doesn't jibe with your recollection of the visit, contact your insurer, McKenna said.

In Alabama, the company has clinics in Huntsville, Birmingham, Dothan, Tuscaloosa, Montgomery and Auburn, according to its website.