A settlement of $4.5 million was reached between the federal government and a group of home health companies involving alleged illegal kickbacks provided to 46 assisted living communities. The settlement was announced by the Department of Justice and includes $2.1 million in restitution from Guardian Health Care Inc., Gem City Home Care LLC, and Care Connection of Cincinnati LLC, along with their owner, Evolution Health LLC. The kickbacks were provided to staff members and residents of the assisted living communities and 15 healthcare providers in Indiana, Ohio, and Texas.
Assisted living providers contacted by McKnight’s Senior Living claimed they were either unaware of the allegations or no longer owned the communities named in the settlement. They noted that assisted living residents, not the communities, typically hire home health companies. The settlement resolves allegations that between 2013 and 2022, the home health companies provided lease payments, wellness health services, sports tickets, and meals in exchange for referrals of Medicare beneficiaries to numerous assisted living communities and healthcare providers.
In 2022, just before Amedisys Inc. acquired Evolution Health, the home health companies disclosed to federal authorities their potential violation of the Anti-Kickback Statute. They had provided items of value to assisted living communities to operate wellness centers in order to induce referrals of residents. The home health companies ceased this conduct, preserved relevant documents, filed a supplemental disclosure, and cooperated with the government’s investigation, according to the Justice Department. The companies received credit for their actions and agreed to cooperate with the ongoing federal investigation into individuals involved in the scheme not covered by the settlement.
The settlement highlights the importance of following legal guidelines when engaging in business practices and serving vulnerable populations such as assisted living residents.