Home Health Owner To Pay $4.5 Million Over Alleged Kickbacks To Doctors, Assisted Living Facilities

A home health owner has agreed to pay about $4.5 million to resolve allegations related to False Claims Act violations. Specifically, the owner – who operated multiple agencies – allegedly provided illegal kickbacks to assisted living facilities and physicians in exchange for referrals.

Guardian Health Care, Gem City Home Care and Care Connection of Cincinnati were the alleged agencies involved in the scheme.

The Anti-Kickback Statute “prohibits the provision of remuneration with the intent to induce referrals of government health care program business.” The above agencies allegedly violated the statute from 2013 to 2022 in Texas, Ohio and Indiana.

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The kickbacks specifically came in the form of wellness health services, sports tickets and meals, all in exchange for Medicare beneficiary referrals.

“It is imperative to ensure that improper financial incentives play no role in decisions regarding patient care,”Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said in a statement. “Today’s resolution demonstrates the department’s commitment to protecting the integrity of federal health care programs and the medical treatment received by their beneficiaries.”

The claims resolved by the settlement are “allegations only,” investigators said. 

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Last month, a Cincinnati-based home health agency owner racked up $8.5 Million in fraudulent claims and hired employees with a criminal history.