Gentiva, successor to Kindred at Home, has agreed to pay $19.428 million to settle allegations that it knowingly submitted false claims for hospice services for patients ineligible for hospice benefits under federal health care programs. The settlement addresses claims involving various entities that previously operated Kindred at Home hospice locations, including Avalon, Kindred, SouthernCare, and SouthernCare New Beacon.
U.S. Attorney Henry C. Leventis for the Middle District of Tennessee emphasized the importance of ensuring that federal and state health care funds are used appropriately to support hospice programs. He stated, “We are committed to holding accountable health care companies and providers who prioritize profits over patient care by ignoring these requirements.”
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Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, also highlighted the significance of the hospice benefit under Medicare and other federal health care programs for vulnerable patients. He affirmed that the department would ensure that these benefits are not misused.
The settlement resolves allegations that from 2010 until February 2020, Kindred and related entities submitted false claims for hospice services provided to Avalon hospice patients in Tennessee who were not terminally ill and ineligible for Medicare or Medicaid hospice benefits. Similar allegations were resolved for Kindred, SouthernCare, and SouthernCare New Beacon locations across the United States, including in Rhode Island, Texas, Missouri, Alabama, Indiana, and Ohio.
Additionally, it addresses claims that SouthernCare New Beacon violated the Anti-Kickback Statute by paying a consulting physician to induce hospice referrals to its Gadsden, Alabama location. This settlement arose from a voluntary self-disclosure by New Beacon Healthcare Group LLC, which operates as SouthernCare New Beacon Hospice.
U.S. Attorney Michael A. Bennett for the Western District of Kentucky commended the coordinated effort that led to the settlement, while U.S. Attorney Zachary A. Cunha for the District of Rhode Island emphasized the importance of ensuring federal funding goes to patients in need. U.S. Attorney Todd Gee for the Southern District of Mississippi noted that hospice services should be based on medical diagnoses, not profit motives, and U.S. Attorney Sean Costello for the Southern District of Alabama reiterated the commitment to protect federal healthcare programs from false claims.
The federal government will receive $18,956,151.32 from the settlement, with the State of Tennessee receiving $448,800 and the State of Ohio receiving $23,618.68.
The settlement resolves claims in nine lawsuits brought under the False Claims Act by current and former Kindred employees. These whistleblower provisions allow private parties to file actions on behalf of the United States and receive a portion of any recovery. The share of the settlement for the whistleblowers has not yet been determined.
The resolution was the result of collaboration between the Justice Department’s Civil Division, various U.S. Attorneys’ Offices, and law enforcement partners, including the HHS-OIG, Defense Criminal Investigative Service, and others.
For those who wish to report potential fraud, waste, abuse, and mismanagement, tips can be submitted to HHS at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Source: Read Original Release