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Home Health & Hospice Week

Industry Note:

Volunteer State HHAs Agree To $9 Million Settlement

Published on Thu Aug 30, 2012

Fees paid under cost-based reimbursement lie at the heart of a $9 million settlement agreed to by a Tennessee home care provider and related entities.A group now known as CareAll Manage-ment, which includes former management company Diversified Health Management Inc. and three home health agencies, has agreed to pay $9.4 million to settle charges that it violated the False Claims Act and other laws, the Department of Justice says in a release.From 1999 to 2001, eight cost reports from the entities "knowingly hid the relationship between the management company and the home health agencies," the DOJ alleges. CareAll owner James W. Carell owned the management company and his friend Robert Vining -- an attorney -- served as the sham owner of the agencies, prosecutors charge. "The cost reports should have disclosed that the management company was related to the home health agencies, which would have lowered the Medicare reimbursement for the management [...]
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