Alabama’s SouthernCare Inc. is facing a multi-million dollar reckoning after being caught red-handed in a hospice care fraud scheme that bilked the government out of millions. The Birmingham-based company, which operates in 15 states, has agreed to fork over $24.7 million to settle charges.
Their alleged trickery? Submitting false claims for patients who weren’t eligible for hospice care—Medicare’s end-of-life benefit reserved for those with a terminal prognosis of six months or less. SouthernCare’s CEO and shareholders are now paying the price for what officials describe as a pattern of deception.
The settlement is a direct result of qui tam suits filed by two former employees, Tanya Rice and Nancy Romeo, who turned whistleblower. Their efforts have earned them $4.9 million in rewards, while taxpayers are left to foot the $24.7 million tab.
U.S. Attorney Alice H. Martin calls out SouthernCare’s actions as a betrayal of the public trust. ‘This settlement underscores our commitment to safeguard Medicare beneficiaries and protect against fraud,’ she declares. The company must now comply with stringent oversight, facing closer scrutiny under a Corporate Integrity Agreement with the Office of Inspector General.
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Key Facts
- State: Alabama
- District: Northern District of Alabama
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release
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