November 14, 2014

DOJ Catch of the Week — CareAll Management

By the C|C Whistleblower Lawyer Team

This week’s Department of Justice “catch of the week” goes to CareAll Management LLC.  On Wednesday, the home healthcare company agreed to pay $25 million to settle charges it violated the False Claims Act by submitting false and upcoded home healthcare billings to Medicare and Medicaid.  CareAll is based in Nashville, Tennessee, and is one of Tennessee’s largest home health providers.  See DOJ Press Release.

According to the government, between 2006 and 2013, CareAll overstated the severity of patients’ conditions to increase billings and billed for services that were not medically necessary and rendered to patients who were not homebound.  This is CareAll’s second False Claims Act settlement within the last two years.  In 2012, it paid roughly $9 million for allegedly submitting false cost reports to Medicare.  The current allegations first arose in a whistleblower lawsuit filed by Toney Gonzales under the qui tam provisions of the False Claims Act.  He will receive more than $3.9 million as his share of the recovery.

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