Corporate Compliance

Former HealthEssentials Solutions manager indicted for healthcare fraud

Compliance Monitor, May 6, 2009

A federal grand jury indicted Karen Stone, former business manager of Kentucky-based HealthEssentials Solutions, on charges of healthcare fraud, according to an article in the Louisville Courier-Journal.
According to the article, Stone caused false claims to be sent to Medicare between 2001 and 2004. HealthEssentials, established in 1998, provided nurse practitioner services to assisted-living homes until 2005 when the company filed for bankruptcy, according to a Department of Justice (DOJ) release.
Federal agents raided the offices after four former employees filed separate whistleblower cases. In September 2008, Kentucky District Judge Thomas Russell ordered HealthEssentials to pay $3.1 million for submitting false claims to Medicare, according to the DOJ.

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