A settlement has been reached to resolve False Claims Act allegations against five hospice companies.
The allegations arose from a lawsuit that claimed International Tutoring Services LLC, formerly known as International Tutoring Services Inc and doing business as Hospice Plus; Goodwin Hospice LLC; Phoenix Hospice LP; Hospice Plus LP; and Curo Health Services LLC, formerly known as Curo Health Services Inc, agreed to settle the case that claimed the companies violated the False Claims Act by paying kickbacks in exchange for patient referrals
Reportedly, these allegations were brought forward by several whistleblowers claiming that two different schemes allowed the hospice companies to file false claims to Medicare and Texas Medicaid.
According to the Department of Justice, first alleged scheme was from 2007 through 2012, kickbacks were allegedly paid to American Physician Housecalls, a physician housecall company, in exchange for patient referrals to these hospice companies. The alleged kickbacks took the form of sham loans, a free equity interest in another entity, stock dividends, and free rental space. Second, from 2007 through 2014, kickbacks were allegedly paid to medical providers, including doctors and nurses as well as hospitals and long-term care facilities, in exchange for patient referrals to these hospice companies. The alleged kickbacks took the form of cash, gift cards, and other valuable items.
“We will not tolerate the payment of illegal kickbacks, which unjustly drive up the cost of health care,” said U.S. Attorney Parker. “Any health care provider who seeks to profit illegally at the expense of federal beneficiaries and taxpayers will face consequences.”
Both cases were filed as qui tam cases in Dallas, Texas, permitting private individuals to sue on behalf of the government for false claims and to share in any recovery.
