Hospicio La Paz, Inc., Healthcare Fraud, Puerto Rico 2016

Hospicio La Paz, Inc., a Puerto Rico-based healthcare provider, has been found guilty of healthcare fraud, resulting in a massive $2.5 million settlement with the U.S. government.

The investigation, carried out by the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) and the U.S. Attorney’s Office, District of Puerto Rico, uncovered approximately $1,504,509.00 in questionable billings submitted for payment by Hospicio La Paz, Inc. to Medicare Program, Part A, from October 2011, through September 2012.

Under the False Claims Act, Title 31, United States Code, Sections 3729, et seq., the United States can recover up to three times the amount of loss and civil monetary penalties ranging from $5,500.00 to $11,000.00 per false claim.

The settlement amount of $2,500,000.00, including excess damages and penalties, was reached on May 18, 2016. Hospicio La Paz, Inc. will also enter into a compliance agreement with HHS-OIG.

The U.S. Attorney’s Office will continue to investigate healthcare fraud matters and will aggressively pursue civil and criminal actions against those who attempt to defraud the United States.

The matter was prosecuted by Assistant U.S. Attorney Rafael J. López Rivera, Civil Health Care Fraud Coordinator, at the U.S. Attorney’s Office.

In this case, the defendant is Hospicio La Paz, Inc., a healthcare provider that submitted false claims to the Medicare Program. The exact criminal charges are not specified, but the defendant is accused of violating the False Claims Act. The city and state are San Juan, Puerto Rico. The exact date of the crime is not specified, but the settlement was reached on May 18, 2016. The sentence or outcome is that Hospicio La Paz, Inc. has agreed to pay $2,500,000.00, including excess damages and penalties, and will enter into a compliance agreement with HHS-OIG.

The dollar amount of the settlement is $2.5 million. The exact amount of loss is $1,504,509.00, and the defendant will pay up to three times this amount, plus penalties.

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