Monday, January 19, 2009

Alabama Hospice Pays $24.7 Million Fine To Settle Healthcare Fraud Charges

SouthernCare Inc., based in Birmingham, Alabama, has agreed to pay $24.7 million to settle charges it made false claims to the government concerning medicare reimbursements for patients who did not qualify. The case brought against SouthernCare was the result of two qui tam suits filed by two former SouthernCare employees, Tanya Rice and Nancy Romeo, both registered nurses, who will receive $4.9 million as their share in filing the cases. The prosecutor in the case, Alice H. Martin, U.S. Attorney for the Northern District of Alabama is quoted as saying, "Our investigation showed a pattern and practice to falsely admit patients to hospice care who did not qualify and to bill Medicare for that care.

Read the story here, here and here.

Read the DOJ's announcement here.

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