Corporate Compliance

Home health provider to pay $65 million to resolve False Claims Act allegations

Compliance Monitor, October 5, 2011

LHC Group Inc. must pay $65 million plus interest for violating the False Claims Act by fraudulently billing the Medicare, TRICARE, and Federal Employees Health Benefits programs, the U.S. Department of Justice (DOJ) announced recently.

The company, based in Lafayette, LA, must also abide by a corporate integrity agreement with the U.S. Department of Health and Human Services-Office of Inspector General (OIG).

The fraudulent billings occurred between 2006 and 2008 when LHC billed for services that it did not provide or that were not medically necessary. “As we work hard to spend our public health care dollars efficiently, settlements like this help us maintain critical health care programs,” Tony West, assistant attorney general for the DOJ’s Civil Division, said in a press release.

The DOJ and OIG, under the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, are working together to reduce the risk of financial fraud to Medicare and Medicaid. According to the DOJ press release, the False Claims Act is one of the most effective resources in fighting fraudulent claims. Since 2009, the DOJ has recovered more than $6 billion as a result of fraud against government health care programs.

Read more on the Department of Justice Website.

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