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Hospice Provider Settles Whistleblower Claims For $150 Million

A major hospice and health care services provider in Pennsylvania has settled whistleblower claims for $150 million.

The company, Amedisys, settled seven separate suits filed under the qui tam provisions of the False Claims Act, according to the U.S. Lawyer’s Office. Just over $26 million will be split between the realtors, with the rest going to the government.

The allegations against Amedisys stem from the provider’s method of fraudulently charging Medicare for medically unneccesary procedures and failure to refund overpayments to Medicare for services that it provided to patients who weren’t homebound, patients who didn’t require skilled nursing or therapy and patients who didn’t require the given services.

“We have recovered billions of dollar in federal health care funds from schemes such as the one alleged in this case,” said U.S. Lawyer Zane D. Memeger. “Those are health care dollars that should be spent on legitimate medical needs.”

Just this week, Florida topped the list of Medicare-banned providers with nearly 1,5000 entries.

However, this does not come as much as a surprise.

In 2007, Florida was the first city to get a Medicare fraud strike force. Now, there are eight others in cities such as Tampa, Dallas, Houston, Detroit and Brooklyn.

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Source: The Daily Business Review, “Hospice Provider settles for $150M in whistleblower case,” April 25, 2014

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