Home Health & Hospice Week

Industry Notes:

BAYADA Settles Whistleblower Charges For $17 Million

Sometimes an acquisition is more than an acquisition.

Home care companies hoping to boost referrals from senior living companies should watch out for a prohibited arrangement spelled out in a new fraud settlement.

Moorestown, New Jersey-based BAYADA bought two home health agencies in Arizona from a national “retirement home operator.” The purchase was actually a kickback to induce referrals from the “retirement communities operated by the seller throughout the United States,” the Department of Justice alleges in a release.

The case was sparked by a qui tam lawsuit filed by David Freedman, the former director of strategic growth for BAYADA between 2009 and 2016, the DOJ notes. “One of the most powerful tools” in the government’s effort to combat healthcare fraud “is the False Claims Act,” the DOJ emphasizes.

BAYADA has agreed to pay $17 million to settle the charges. Freedman will get $3 million of that, according to the Justice Department.

“The U.S. Attorney’s Office for the District of New Jersey and our partners in the Department of Justice and at the Department of Health and Human Services Office of Inspector General (HHS-OIG) will continue to pursue those who, like BAYADA, offer kickbacks for patient referrals, no matter the disguise those kickback arrangements might wear,” Acting U.S. Attorney Rachael Honig vows in the release.

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