A settlement has been reached to resolve False Claims Act allegations against Foundations Health Solutions Inc, Olympia Therapy Inc, and Tridia Hospice Care Inc, and their executives, Brian Colleran and Daniel Parker.
The allegations arose from lawsuits that claimed Foundations Health Solutions Inc, Olympia Therapy Inc, and Tridia Hospice Care Inc, and their executives, Brian Colleran and Daniel Parker submitted false claims for medically unnecessary rehabilitation therapy and hospice services to Medicare.
Foundations Health Solutions Inc (FHS) is the corporate successor to Provider Services Inc. (PSI), which provided management services to skilled nursing facilities. In 2010, PSI merged with BCFL Holdings Inc. In 2013, the company was renamed Foundation Health Solutions.
Olympia provided rehabilitation therapy services at skilled nursing facilities that were managed by PSI and BCFL. Tridia provided hospice care services.
Brian Colleran and Daniel Parker are the executives who partially controlled or owned PSI, BCFL, FHS, Olympia, and Tridia at various times between 2008 and 2013.
According to the Justice Department, between 2008 and 2012, Olympia and PSI/BCFL allegedly submitted false claims to Medicare for medically unnecessary rehabilitation therapy services at 18 skilled nursing facilities. A government investigation showed that the rehab was allegedly provided at medically unnecessary levels in order to fraudulently maximize Medicare reimbursement for the services.
Allegedly, between 2011 and 2013, Tridia submitted false claims to Medicare for hospice services provided to patients considered ineligible to receive hospice benefits from Medicare. During this time, Tridia allegedly failed to conduct proper certifications or medical examinations for certain patients, which made them ineligible to receive Medicare hospice benefits.
Allegedly, between January 2008 through December 2012, Colleran and Parker solicited and received kickbacks in return for referring patients from skilled nursing facilities managed by PSI or BCFL to Amber Home Care, a Columbus, Ohio home health care services provider.
Reportedly, FHS and Colleran will enter into a five-year corporate integrity agreement with the HHS Office of Inspector General (HHS-OIG).
The settlement agreement resolves allegations brought forward by whistleblowers, Vladimir Trakhter, a former Olympia employee, and Paula Bourne and La’Tasha Goodwin, both former employees at Tridia. Vladimir Trahkter will receive approximately a reward of $2.9 million and Paula Bourne and La’Tasha Goodwin together will share approximately $740,000.
“Clinical decisions should be based on patient needs rather than corporate profits,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement reflects the Department’s continuing commitment to safeguarding patients and the Medicare system.”
