Corporate Compliance

TN healthcare company agrees to pay $1.3 million to settle false claims case

Compliance Monitor, June 17, 2009

Kindred Healthcare, Inc. and its successor PharMerica Healthcare Pharmacy, LLC, agreed to pay $1.3 million to settle claims that the company overbilled the Tennessee Medicaid agency (TennCare), according to a Department of Justice (DOJ) release.
 
Kindred, a healthcare services company based in Louisville, KY, provides medications to TennCare patients in nursing homes and long-term care facilities. According to the DOJ, from 2003 to 2006 Kindred’s Knoxville facility billed TennCare for more drugs than the facility actually administered.
 
A former Kindred employee filed the suit on the behalf of the State of Tennessee and the federal government via the qui tam provision in the False Claims Act (otherwise known as the whistleblower provision). That employee will receive a $200,000 share of the settlement for her help in the investigation.

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