Corporate Compliance

Provider charged with Medicaid fraud

Compliance Monitor, February 27, 2008

A Virginia woman has been charged with 27 counts of healthcare fraud and making false statements, according to a Department of Justice (DOJ) press release.

Sharon M. Honeycutt, of Portsmouth, VA., owned and operated Ace Homecare, a Medicaid provider of durable medical equipment. Under a Medicaid provider agreement, Ace Homecare was entitled to receive Medicaid payments for providing items to Medicaid recipients in accordance with a physician's written order.

The DOJ alleges that between March 2003 and July 2005, Honeycutt filed claims for providing these items without a written physician order. Honeycutt allegedly filed claims for Ace and another Medicaid provider, then falsified Certificates of Medical Necessity when the companies were audited.

Honeycutt filed approximately 1,500 fraudulent claims for 22 Medicaid recipients, resulting in a loss to Medicaid of approximately $101,783.

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