The DOJ announced that Guardian Health Care Inc., Gem City Home Care LLC, Care Connection of Cincinnati LLC, and Evolution Health LLC (“Companies”) will pay $4,496,330 to resolve allegations of violating the False Claims Act (“FCA”).
The Companies, which were subsequently acquired by Amedisyc, Inc., provided home health services to Medicare beneficiaries in Ohio, Texas, and Indiana. According to the settlement, in March 2022, the Companies disclosed to the United States that they may have violated the Anti-Kickback Statute, 42 U.S.C. 1320a-7b(b), which prohibits the exchange of renumeration to induce the referral of business. After reviewing information submitted, the United States contended that the Companies provided renumeration to staff, residents, and 15 referring healthcare providers associated with 46 of its assisted living facilities in exchange for Medicare referrals. The remuneration allegedly provided included lease payments, sport tickets, and health services. The United States alleged that the foregoing exchange caused the Settling Companies to submit false claims to the Medicare program in violation of the FCA.
The Companies received credit for disclosing the alleged conduct to the government and identifying individuals involved. The Companies have agreed to pay $4,496,330, of which $2,114,491.75 is restitution. Upon this settlement announcement, Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division commented that “[t]oday’s resolution demonstrates the department’s commitment to protecting the integrity of federal health care programs and the medical treatment received by their beneficiaries.”
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to False Claims Act litigation and health care fraud matters. If you need assistance with such a matter, please contact us today.