A Tennessee-based home health care provider and related entities have agreed to pay $9.375 million to resolve a False Claims Act lawsuit filed in 2009.
CareAll Management LLC, formerly known as Diversified Health Management, Inc., James W. Carell, CareAll Inc., the James W. Carell Family Trust, VIP Home Nursing and Rehabilitation Services LLC, Professional Home Health Care LLC, University Home Health LLC, and Elizabeth Vining, as representative of the Estate of Robert Vining, have agreed to pay the federal government $9.375 million to resolve the lawsuit.
The lawsuit alleged that the defendants violated the False Claims Act, caused Medicare to pay out money through mistake of fact, and were unjustly enriched by falsely concealing the home health agencies’ relationship with their management company.
The settlement resolves the United States’ lawsuit alleging that the CareAll entities fraudulently submitted eight cost reports for fiscal years 1999, 2000 and 2001 to support their Medicare billings.
The United States alleged that these cost reports were false because they knowingly hid the relationship between the management company and the home health agencies, which would have lowered the Medicare reimbursement for the management company’s services.
The defendants have agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General (HHS-OIG).
The settlement is a significant victory in the fight against fraud in the Medicare system, and it ensures that federal healthcare dollars are spent appropriately.
Related Federal Cases
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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