Home Health & Hospice Week

Industry Notes:

HHA Owner's Guilty Plea Centers On Kickbacks

A Michigan HHA owner has pleaded guilty in a $22 million Medicare fraud scheme. Usman Butt admitted that he conspired with others to bill Medicare for home care services that were not actually rendered, not medically necessary, and procured through paying illegal kickbacks.

Specifically, Butt admitted that the physical therapy and skilled nursing services provided by his companies, Prestige Home Health Services Inc. in Troy and Royal Home Health Care Inc. in Clawson and Troy were not medically necessary or even rendered, the Department of Justice says in a release. Butt also admitted that he fabricated patient files to give the false appearance that the services were medically necessary and actually provided.

Butt also admitted that he assisted a co-conspirator in filing a false corporate tax return for Prestige, deducting illegal kickbacks as “business expenses” to save Prestige at least $321,485 in taxes due for 2009, the DOJ says.

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