Will your payment arrangements with your referring physicians stand up to scrutiny? If not, you could end up in the position of one Florida home health agency.
Recovery Home Care in West Palm Beach and National Home Care Holdings have agreed to pay $1.1 million to resolve allegations that Recov-ery violated the False Claims Act by improperly paying doctors for referrals, the Department of Justice says in a release.
Recovery allegedly paid dozens of physicians thousands of dollars per month to perform patient chart reviews, the DOJ notes. “According to the government’s lawsuit, the physicians were over-compensated for any actual work they performed and, in reality, payments to the physicians were used to induce them to refer their patients to Recovery,” in violation of the Anti-Kickback Statute and the Stark Law, Justice says.
Former Recovery employee Gregory Simony filed a whistleblower lawsuit including the allegations, and he will receive nearly $200,000 of the settlement, the DOJ notes. National Home Care Holdings bought Recovery after the alleged violations took place from 2009 to 2012. “The government continues to litigate this case against Recovery Home Care’s previous owner, Mark Conklin,” the DOJ notes.