Home Health Agencies Agree to Pay $4.5 Million to Resolve Allegations

A trio of home health agencies have agreed to pay $4.5 million to settle allegations of providing illegal kickbacks to assisted living facilities and physicians in exchange for Medicare patient referrals. The Department of Justice announced the settlement on Monday, which resolves claims that Guardian Health Care Inc., Gem City Home Care LLC, and Care Connection of Cincinnati LLC, along with their former parent company Evolution Health LLC, violated the False Claims Act by offering various incentives to providers in order to secure referrals of Medicare beneficiaries from 2013 through 2022.

Among the incentives offered by the health agencies were lease payments, wellness services, sports tickets, and meals to providers. These actions were seen as a violation of the False Claims Act and have resulted in the hefty settlement amount. This settlement serves as a warning to other healthcare providers about the consequences of engaging in illegal kickback schemes.

Due to the settlement, Guardian Health Care Inc., Gem City Home Care LLC, and Care Connection of Cincinnati LLC have agreed to pay nearly $3.7 million to the federal government and over $800,000 to the state of Ohio. In addition to the monetary settlement, the agencies have also agreed to implement compliance measures to prevent any future violations of healthcare laws.

The Department of Justice’s investigation into these illegal kickback schemes demonstrates their commitment to combating healthcare fraud and protecting the integrity of the Medicare program. It is important for all healthcare providers to adhere to strict ethical standards and comply with healthcare laws to ensure the safety and well-being of Medicare beneficiaries.