CareAll to Settle False Medicare Claims for $25M; Whistleblower to Get $3.9M

Posted: 11/12/2014  browse the blog archive
CareAll to Settle False Medicare Claims for $25M; Whistleblower to Get $3.9M

CareAll Management LLC has agreed to pay $25 million to the federal government and the State of Tennessee in order to settle allegations that it knowingly submitted or caused the submission of false claims to Medicare and Medicaid health care programs, the U.S. Department of Justice announced today.

This settlement resolves allegations that CareAll overstated the severity of patients’ conditions to increase billings and billed for services that were not medically necessary and rendered to patients who were not homebound.      

This is CareAll’s second settlement of alleged False Claims Act violations within the last two years.  In 2012, CareAll paid nearly $9.38 million for allegedly submitting false cost reports to Medicare.  As part of the settlement announced today, the companies agreed to be bound by the terms of an enhanced and extended corporate integrity agreement with the Department of Health and Human Services-Office of Inspector General (HHS-OIG) in an effort to avoid future fraud and compliance failures.

Under the False Claims Act, private citizens, known as relators, can bring suit on behalf of the United States and share in any recovery.  The relator in this case, Toney Gonzales, will receive more than $3.9 million as his share of the recovery.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.