Home Health & Hospice Week

Industry Note:

HHA Owner Pays $1.75M To Settle Fraud Charges

Sham medical directorships are at the heart of a $1.75 million fraud settlement in Florida.

Mark Conklin, former owner of Recovery Home Care Inc. and Recovery Home Care Services Inc. in West Palm Beach, agreed to the settlement to resolve a lawsuit alleging that RHC paid dozens of physicians thousands of dollars per month to serve as medical directors who supposedly conducted quality reviews of RHC patient charts, but in many instances performed little or no work, according to a Department of Justice release.

The whistleblower who sparked the case, former employee Gregory Simony, will receive up to $315,000 in the case, the DOJ says. Conklin sold RHC to National Home Care Holdings in 2012.

“Home health agency owners who seek to boost profits by paying kickbacks to physicians in exchange for patient referrals will instead pay for their improper conduct at the settlement table,” said HHS Office of Inspector General Special Agent in Charge Shimon R. Richmond in the release.

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