GRIMY TIMES EXCLUSIVE: The United States Attorney for the Southern District of New York, Damian Williams, and Naomi Gruchacz of the Department of Health and Human Services’ Office of Inspector General (HHS-OIG), have announced a $954,416.48 civil fraud settlement with VNS HEALTH, a major non-profit healthcare organization. The settlement resolves allegations that VNS failed to provide or document services for Medicaid patients at their Assertive Community Treatment Program in Far Rockaway, Queens.
From January 1, 2014, through December 31, 2018, the U.S. claimed that VNS submitted false claims for monthly payments for 103 patients who did not receive the full range of services required under the ACT Program. The settlement, approved by U.S. District Judge Paul A. Engelmayer on June 25, 2024, includes a payment to the U.S. of $381,766.59 and $572,649.89 to New York State.
Williams stated, ‘The patients with serious mental illness who were receiving services from VNS’s Far Rockaway location deserved better. This Office will hold health care providers accountable when they fail to provide the necessary services that the federal and state governments are paying for.’
Gruchacz emphasized, ‘Individuals and entities that participate in the federal healthcare system are required to obey laws meant to preserve program funds and quality patient care.’
The Complaint filed in Manhattan federal court detailed VNS’s failure to complete intake forms, initial assessments, immediate needs assessments, service plans, psychiatric visits, and progress notes for 103 patients at the ACT Program. As part of the settlement, VNS admitted and accepted responsibility for these failures.
Related Federal Cases
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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