$1.75 Million Settlement reached to resolve False Claims Act Allegations against Recovery Home Care Inc and Recovery Home Care Services Inc

Settlement Amount:

$1,750,000

A settlement has been reached to resolve False Claims Act allegations against Recovery Home Care Inc and Recovery Home Care Services Inc.

The whistleblowers' share of the settlement will be $315,000.

The allegations arose from a lawsuit, claiming Recovery Home Care Inc and Recovery Home Care Services Inc (collectively RHC) paid illegal kickbacks to doctors who agreed to refer Medicare patients to RHC for home health care services.

According to the Department of Justice, from 2009 through 2012, RHC allegedly paid dozens of physicians thousands of dollars per month to serve as sham medical directors who supposedly conducted quality reviews of RHC patient charts. The physicians in many instances performed little or no work, but nevertheless received thousands of dollars from RHC. The government’s complaint contended that these payments were kickbacks intended to induce the physicians to refer their patients to RHC.

On March 9, 2015, a settlement was also reached for $1.1 million with RHC’s purchaser, National Home Care Holdings.

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