Connecticut Home Health Agency and Its Owners Pay $5.25 Million to Settle False Claims Act Violations
In a shocking case of healthcare fraud, Family Care Visiting Nurse and Home Care Agency, LLC (Family Care VNA), and its owners, David A. Krett and Rita C. Krett, R.N., B.S.N., have entered into a civil settlement with the federal and state governments to resolve allegations that they violated the federal and state False Claims Acts. The agency, which has offices in Stratford, Woodbridge, Norwalk and Meriden, and provides home health services in Fairfield, New Haven, Hartford and Middlesex Counties, will pay approximately $5.25 million to settle the claims.
The allegations against Family Care VNA involve fraudulent billing to Medicaid for certain home health services. The services in question included 60-day assessments, billed pursuant to the Healthcare Common Procedure Coding System code S9123. According to the Healthcare Common Procedure Coding System, this service must be performed by a registered nurse. However, it is alleged that Family Care VNA regularly billed S9123 codes when a registered nurse did not provide the assessments as required by Medicaid.
Additionally, it is alleged that Family Care VNA, with the knowledge and at the direction of its owners, regularly billed S9123 claims to Medicaid knowing a registered nurse had not performed the 60-day assessment as required by Medicaid. Furthermore, Family Care VNA, with the knowledge of its owners, submitted claims to Medicaid for patients who were or may have been dually eligible for Medicare and Medicaid, without first following required procedures for submitting claims to Medicare.
“Home Health Care providers and other providers who fraudulently bill the Medicaid program drive up the cost of health care for all of us,” said U.S. Attorney Deirdre M. Daly. “The U.S. Attorney’s office is committed to working with our state counterparts to vigorously pursue health care providers that submit fraudulent claims to government health care programs.”
Family Care VNA, David Krett and Rita Krett have paid $5,253,908.54 to settle the allegations under the federal and state False Claims Acts, which covers the time period from January 1, 2009 through April 30, 2016. The agency and its owners have also entered into a Corporate Integrity Agreement with the Office of Inspector General for the U.S. Department of Health and Human Services. The case was investigated by Lawrence Marini, Forensic Fraud Examiner for the Connecticut Attorney General’s Office, with the assistance of the Connecticut Department of Social Services, and by the Office of Inspector General for the U.S. Department of Health and Human Services.
Family Care Visiting Nurse and Home Care Agency, LLC, David A. Krett, and Rita C. Krett, R.N., B.S.N., were charged with violating the federal and state False Claims Acts. The agency has offices in Stratford, Woodbridge, Norwalk and Meriden, and provides home health services in Fairfield, New Haven, Hartford and Middlesex Counties. The settlement was paid on April 30, 2016.
U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the HHS-OIG Hotline at 1-800-HHS-TIPS (1-800-447-8477). This hotline is available 24/7 and allows individuals to report suspected Medicare and Medicaid fraud anonymously.
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Key Facts
- State: Connecticut
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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