Iowa Hospice, LLC has agreed to pay out a whopping $1,088,244.02 to settle allegations that the company bilked Medicare out of millions by submitting false claims for hospice services. According to the United States Attorney Kevin W. Techau, the Medicare hospice benefit is meant for terminally ill patients who need end-of-life care, and Iowa Hospice knowingly submitted false claims for patients who didn’t fit this criteria.
The False Claims Act allegations against Iowa Hospice arose from a joint investigation by the Department of Health and Human Services, Office of Inspector General and NCI Advancemed. The lawsuit alleged that Iowa Hospice knowingly submitted false claims to the government for payment of hospice services to patients who didn’t have a life expectancy of six months or less if their illnesses ran their normal course.
“The Medicare hospice benefit is only intended for terminally ill Medicare beneficiaries who need end of life care,” said United States Attorney Kevin W. Techau. “We will continue to diligently investigate and pursue all instances of misconduct in federal health care programs to ensure that no federal monies are misspent, all providers play by the rules, and patients receive the care to which they are entitled.”
Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services, Office of Inspector General added, “Being a hospice provider in the Medicare program is a privilege, not a right. Hospice providers that try to boost their profits by providing hospice care to Medicare beneficiaries who are not terminally ill compromise both the health of those patients as well as the financial integrity of Medicare.”
The settlement is the result of a qui tam, or whistleblower, provision of the False Claims Act, where a private party may file suit on behalf of the United States for false claims and share in any recovery.
The allegations resolved by the settlement are allegations only, and there has been no admission or judicial determination of liability. The case serves as a reminder that healthcare providers who engage in misconduct will be held accountable.
Iowa Hospice, LLC has agreed to pay the $1,088,244.02 to resolve the allegations, marking a significant blow to the company’s profits and a win for taxpayers.
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Key Facts
- State: Iowa
- Category: Healthcare Fraud
- Source: DOJ Press Release â†â€â€
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