Home Health & Hospice Week

Industry Note:

Company That Bought Gentiva Settles Therapy Fraud Charges For 6 Figures

One of the nation’s largest home health services providers has settled therapy-related fraud charges for a whopping $125 million — but the settlement doesn’t pertain to home health therapy.

Kindred Healthcare Inc., which acquired Gentiva for $1.8 billion last year, says “the settlement agreement … relates to allegations that rehabilitation therapy services provided to patients in skilled nursing centers were not delivered or billed in accordance with Medicare requirements,” according a release. The settlement covers services furnished by Kindred division RehabCare Group Inc.

A Department of Justice release rattles off a laundry list of scams to game the Medicare system and maximize therapy reimbursement for Rehab-Care and four nursing homes. “RehabCare and its nursing facility customers engaged in a systematic and broad-ranging scheme to increase profits by delivering, or purporting to deliver, therapy in a manner that was focused on increasing Medicare reimbursement rather than on the clinical needs of patients,” says U.S. Attorney Carmen M. Ortiz for the District of Massachusetts in the DOJ release.

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