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Hospice Provider Agrees to Pay $75 Million to Settle False Claims Act Lawsuit

Chemed Corporation and various of its subsidiaries, including Vitas Hospice Services LLC and Vitas Healthcare Corporation (collectively “Vitas”), recently settled allegations brought by the federal government that Vitas violated the False Claims Act by submitting to Medicare false claims for hospice services.

As part of the settlement, Vitas agreed to pay $75 million and enter into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General.

The federal government alleged that between 2002 and 2013, Vitas knowingly submitted false claims to Medicare for patients who were not terminally ill. Medicare's hospice benefit is available to patients who are terminally ill and choose to forgo the right to curative care. The government alleged that Vitas rewarded employees with bonuses for the number of patients receiving hospice services, without regard to whether the patients were terminally ill and would have benefited from continuing curative care. In addition, the government alleged that Vitas submitted claims for continuous home care services that were not necessary, not actually provided, or not performed in accordance with Medicare requirements.

As this case demonstrates, Medicare providers should carefully evaluate their billing and claim submission practices, thoroughly train employees, and conduct periodic internal audits to ensure compliance with Medicare requirements. If you have any questions, please contact Jennifer Van Regenmorter or Julie Hamlet.

Categories: Billing/Payment, Hospice, Medicare/Medicaid, Providers

 has particular expertise in health law and she represents providers with emphasis in the areas of physicians, hospice, home care and long term care, including one of the country’s largest long-term care organizations. She has a vast array of experience in teaming with providers in the areas of regulatory compliance and contracts. 

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Congratulations to the attorneys of the Health Care practice group at Foster Swift Collins & Smith, PC for their inclusion in the Best Lawyers in America 2021 edition. Firm-wide, 44 lawyers were listed. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation and as lawyers are not required or allowed to pay a fee to be listed; inclusion in Best Lawyers is considered a singular honor. Health Care practice group members listed in Best Lawyers are as follows:

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