Hospice of Ariz to Pay $12M for Medicare Fraud; Whistleblower to get $1.8M

Hospice of Arizona, L.C., American Hospice Management LLC, and American Hospice Management Holdings LLC, have agreed to pay $12 million to resolve allegations that they violated the False Claims Act by knowingly defrauding Medicare, the Department of Justice announced today.

Hospice of Arizona and its related entities allegedly engaged in practices that resulted in the admission of ineligible patients, inflated medical bills, and delayed and discouraged staff from discharging patients no longer eligible for hospice care.  As part of the settlement, American Hospice Management Holdings has agreed to enter a corporate integrity agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to avoid and promptly detect similar misconduct.

Medicare hospice benefits are available to patients with a life expectancy of six months or fewer; these patients do not receive care intended to treat or stop their illnesses, and instead receive medical care focused on providing them with relief from the symptoms, pain, and stress of a terminal illness.

The allegations arose from a lawsuit filed by former Hospice of Arizona employee Ellen Momeyer, under the qui tam, or whistleblower, provisions of the False Claims Act.  The False Claims Act allows private citizens to bring suit on behalf of the United States and share in any recovery.  Momeyer will receive $1.8 million.

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.