In a stunning development, three home health agencies have agreed to pay $4.5 million in a settlement to address 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, targeting Guardian Health Care Inc., Gem City Home Care LLC, and Care Connection of Cincinnati LLC, as well as their former parent company Evolution Health LLC.
The trio was accused of violating the False Claims Act by offering various incentives to providers in order to secure referrals of Medicare beneficiaries between 2013 and 2022. The illegal kickbacks included lease payments, wellness services, sports tickets, and meals provided to providers in exchange for referrals. These actions were deemed to be in violation of laws that prohibit healthcare providers from engaging in activities that could influence patient referrals for financial gain.
As part of the settlement agreement, the home health agencies have agreed to pay nearly $4.5 million to resolve the allegations. This settlement serves as a reminder of the importance of compliance with anti-kickback laws and regulations in the healthcare industry. Violations of these laws can result in significant financial penalties and potential legal consequences for healthcare providers. It is essential for providers to ensure that they are operating within the bounds of the law and maintaining ethical practices in their patient referral processes.