HealthEssentials to Settle False Medicare Claims for $1M; Whistleblowers to Get $153K
Michael R. Barr, former chief executive officer for HealthEssentials Solutions Inc., has agreed to pay $1 million to resolve allegations that he violated the False Claims Act by causing HealthEssentials to submit false claims to Medicare, the Justice Department announced today.
The government alleged that HealthEssentials billed for services that were inflated or not medically necessary and that Barr pressured HealthEssentials employees to inflate the company’s billings, despite having been advised by attorneys and others that doing so would be improper. The government further alleged that Barr pressured HealthEssentials employees to conduct special medical assessments on patients, without regard to whether the patients required the assessments, solely to increase the amount that HealthEssentials could bill for the visits.
As part of the settlement, Barr has agreed to a three-year period of exclusion from participating in federally funded health care programs. Norman J. Pfaadt, HealthEssentials’ former chief financial officer, also agreed to pay $20,000 to resolve similar allegations.
The lawsuit was originally filed by Michael and Leigh RoBards, former HealthEssentials employees, under the whistleblower provisions of the False Claims Act. The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. Michael and Leigh RoBards will receive a total of $153,000 as their portion of the settlement.
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.