Corporate Compliance

News: Home healthcare facility to pay $150M for false billings

Compliance Monitor, September 14, 2011

A home healthcare organization will pay a $20 million fine and a $130 million civil settlement for fraudulent billing practices, according to a Department of Justice press release September 12.

Maxim Healthcare Services Inc., based in Columbia, MD, used a nationwide scheme to defraud Medicaid programs and the Veterans Affairs program of more than $61 million over a six-year period by billing for services not rendered or otherwise not reimbursable, according to the press release.

The agreement will allow Maxim to avoid a healthcare fraud conviction on the charges if it complies with the requirements.

To date, nine individuals – eight former Maxim employees, including three senior managers, and the parent of a former Maxim patient – have pleaded guilty to felony charges related to:

  • Submission of fraudulent billings to government healthcare programs
  • Creation of fraudulent documentation associated with government program billings
  • False statements to government healthcare program officials regarding Maxim’s activities

Read more on the Department of Justice website.
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