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Home Health and Hospice

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April 15, 2015

Rahmat Begum, owner of Detroit-area home health care agency Empirical Home Health Care Inc. pleaded guilty to fraud and money laundering charges in connection with her role in a $2.6 million home health care scheme.  According to her guilty plea, Begum conspired to submit falsified claims to Medicare based upon referrals obtained through illegal kickbacks to patient recruiters and physicians.  DOJ

March 23, 2015

Michigan-based Portage Hospital, LLC agreed to pay $4,446,392 to settle allegations its hospital-owned home health care agency, Portage Health Home Care & Hospice, violated the False Claims Act by submitting false claims to Medicare for unnecessary or unwarranted physical therapy services.  DOJ

March 18, 2015

Paige Okpalobi, the owner and operator of a New Orleans-based medical clinic and her accountant Christopher White pleaded guilty for their roles in a $50 million Medicare fraud scheme, which involved fraudulently billing Medicare for home health care services not needed or provided.  DOJ

March 13, 2015

Mohammed Sadiq, the owner of two Detroit home health care companies, pleaded guilty to his role in a scheme to fraudulently bill Medicare for $12.6 million in home health services that were not provided or were obtained through illegal kickbacks.  DOJ

March 9, 2015

Florida home health care companies Recovery Home Care Inc., Recovery Home Care Services Inc. and National Home Care Holdings LLC have agreed to pay $1.1 million to resolve allegations that Recovery Home Care violated the False Claims Act by improperly paying doctors for referrals of home health care services provided to Medicare patients.  According to the government, the physicians were over-compensated for any actual work they performed and, in reality, they were paid to induce them to refer their patients to Recovery Home Care in violation of the Anti-Kickback Statute and the Stark Law.  The allegations originated in a whistleblower lawsuit filed by former Recovery Home Care employee Gregory Simony under the qui tam provisions of the False Claims Act.  Simony will receive a whistleblower award of $198,000.  DOJ

February 25, 2015

A federal jury in Detroit convicted Michigan patient recruiter Reginald Smith and Michigan physical therapist Rajan Patel for their roles in a $1.6M Medicare fraud scheme.  According to the evidence, Smith worked as a patient recruiter for Angle’s Touch Home Health Care LLC where he solicited patients for foot care services at adult foster care homes and then referred them to Angle’s Touch for medically unnecessary home health care services in exchange for kickbacks.  The kickbacks were disguised as payments to Smith’s nonprofit Medicare provider People Helping People of Detroit.  Patel worked as a physical therapist at Angle’s Touch where he fabricated patient medical records to make it appear that the recruited patients qualified for and received the home health care services, when they did not.  DOJ

February 23, 2015

Two South Florida medical doctors and their wives, Dr. Alan and Lynn Buhler and Dr. Craig and Cynthia Prokos agreed to pay $1M and $90,000, respectively, to settle allegations they violated the False Claims Act when their wives accepted sham marketer salaries in exchange for their husbands’ referrals to a home health care company called A Plus Home Health Care Inc.  The US previously settled with A Plus and its owner Tracy Nemerofsky and five other couples that allegedly accepted payments from A Plus.  DOJ

February 18, 2015

Hospice services provider Compassionate Care Hospice Group agreed to pay $6.7M to settle charges it violated the federal and New York False Claims Acts by submitting claims to Medicare and Medicaid for hospice nursing services not actually or adequately provided.  Specifically, the government alleged CCH nurses routinely missed their required visits and then falsified nursing notes in patients’ files to make it appear as though the visits had been performed.  The charges originated in a whistleblower lawsuit filed by a former employee under the qui tam provisions of the False Claims Act.  Whistleblower Insider, NY

February 17, 2015

Alexander Lara, owner of Miami-based home health care company Longcare Home Health Corporation, pleaded guilty in connection with a $13M Medicare fraud scheme involving kickbacks and bribes to Medicare beneficiaries, doctors’ offices, medical clinics and others in exchange for patient referrals and fraudulent prescriptions to support fraudulent billings to Medicare.  DOJ

February 10, 2015

Iowa-based home healthcare company ResCare Iowa Inc. agreed to pay $5.63M to resolve allegations it violated the False Claims Act by submitting false home healthcare billings to the Medicare and Medicaid programs.  DOJ
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