Kentucky SNF Chain Preferred Care Settles $540,000 Upcoding Case

Nursing home chain Preferred Care agreed to settle False Claims Act charges for $540,000, the Department of Justice has announced.

Federal officials accused the company of upcoding Medicare beneficiaries between July 2012 and October 2017, and of providing “worthless services” at Kentucky's Stanton Nursing and Rehabilitation Center for three years.

Read more here: https://www.mcknights.com/news/preferred-care-settles-for-540000-in-whistleblower-upcoding-case/article/778714/

Posted on July 17, 2018 .

Federal Appeals Court Holds Medical Judgment Not Valid False Claims Defense

The 10th Circuit Court of Appeals found that a doctor’s certification that a procedure was “reasonable and necessary” is false if the procedure doesn’t meet the government’s definition of what is reasonable and necessary, as determined by the Medicare Program Integrity Manual. Among the requirements is that the procedure is safe and effective; not experimental or investigational; and appropriate, including in duration and frequency.  A doctor's subjective judgment as to "reasonable and necessary" was irrelevant.  

Read more here: https://www.bna.com/medical-judgment-not-n73014477299/

Posted on July 11, 2018 .

Physicians Indicted in $580 Million Kickback Scheme at Pacific Hospital of Long Beach

According to the Department of Justice, the matter relates to the payment of kickbacks in return for referrals of patients to Pacific Hospital for spinal surgeries and other services, which were paid for primarily through the California workers' compensation system. 

Read more here: http://www.healthcarefinancenews.com/news/more-doctors-indicted-15-year-long-580-million-kickback-scheme-pacific-hospital-long-beach. 

 

Posted on July 5, 2018 .

More Than 600 Individuals Charged - Including 76 Doctors, 23 Pharmacists, and 19 Nurses -  in $2 Billion Fraud Scheme

On June 28, 2018, the DOJ and HHA announced the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings.  Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.

Read more here: https://www.justice.gov/opa/pr/national-health-care-fraud-takedown-results-charges-against-601-individuals-responsible-over. 

Posted on June 29, 2018 .

Private Equity Firms Become DOJ Health-Care Fraud Targets

In a recent False Claims Act intervenor complaint, the Department of Justice (DOJ) alleged that Riordan, Lewis & Haden (RLH), a private equity firm based in Los Angeles, participated in a scheme with Diabetic Care Rx to defraud the federal government's TRICARE program.  RLH bought a controlling stake in Diabetic Care Rx in July 2012.

The case underscores the DOJ's willingness to hold private equity and other investment firms accountable for the compliance infractions of the organizations in which they invest.  

Red more here: https://www.bna.com/private-equity-firms-n73014476196/ 

Posted on June 22, 2018 .

Federal Judge Dismisses Whistleblower Case Involving 80 SNFs

A federal judge has dismissed a False Claims Act case against Midwest-based Trilogy Health Systems involving allegations that Trilogy routinely administered unnecessary therapy to residents. 

Read more here: https://www.mcknights.com/news/federal-judge-dismisses-therapy-whistleblower-case-allows-wrongful-firing-claim-to-continue/article/769600/ 

Posted on June 18, 2018 .

Addiction Treatment Center Owner Indicted for Fraudulent Claims by DOJ

The owner of Redirections Treatment Advocates, LLC, an opioid addiction treatment organization with locations in Pennsylvania and West Virginia, has been indicted on charges of unlawfully dispensing controlled substances and health care fraud.  

Read the DOJ's press release here: https://www.justice.gov/usao-wdpa/pr/redirections-treatment-owner-charged-unlawfully-distributing-buprenorphine-and.

 

Posted on June 12, 2018 .

Measure To Implement Government Price Controls For Health Care In California Fails 

 

A proposed bill to create government price controls in California for surgeries, hospital stays, doctor visits and other health care services died when it failed to clear a key committee last week.  Physicians, hospitals and other influential health care providers lobbied intensely against the bill, which they said would lead to longer waits for medical care.  

Read more here: https://apnews.com/ebf4842b1e8546d99114287b4fbfe251/Bill-to-create-health-care-price-controls-in-California-dies

Posted on May 29, 2018 .