Home Healthcare Company Settles False Claims Act Allegations for Nearly $10 Million

Atlantic Home Health Care LLC (AHH), a home healthcare agency operating in nine states, has agreed to pay $9,990,944 to resolve allegations of violating the False Claims Act. The settlement stems from accusations that AHH submitted false claims to the Energy Employees Occupational Illness Compensation Program (EEOICP), a healthcare initiative administered by the Department of Labor (DOL) for the benefit of Department of Energy employees and contractors with occupational illnesses.

The United States alleged that between 2017 and 2021, AHH engaged in fraudulent billing practices, falsely charging the Energy Program for in-home nursing and personal care services when its employees were not physically present in patients' homes. Additionally, the government accused AHH of paying kickbacks through its "friends and family program," offering cash payments up to $5,000 for patient referrals. In-kind payments for various expenses, including food, internet, travel, were also allegedly made to patients and their families.

The Anti-Kickback Statute, designed to prevent corrupt practices in federal healthcare programs, prohibits parties from knowingly and willfully paying or receiving remuneration for patient referrals. The settlement takes into account AHH's financial condition and is also based on allegations related to the company's kickback activities.

Notably, AHH voluntarily disclosed its "friends and family" program and in-kind remuneration to the Department of Health and Human Services Office of Inspector General (DHS-OIG) before the United States disclosed its investigation. The settlement agreement recognizes AHH's cooperation in this regard.

Principal Deputy Assistant Attorney General Brian M. Boynton, who heads the Justice Department’s Civil Division, emphasized the commitment to protecting the integrity of the Energy Employees Occupational Illness Compensation Program. He underscored the importance of ensuring that program beneficiaries receive proper care while safeguarding taxpayer dollars from waste, fraud, and abuse.

U.S. Attorney Gary M. Restaino for the District of Arizona echoed this sentiment, stating that false claims enforcement is vital for preserving the integrity of federal healthcare programs. He particularly condemned the payment of cash kickbacks to induce referrals, asserting that such practices have no place in the healthcare system.

Christopher J. Godfrey, Director of the Office of Workers’ Compensation Programs (OWCP), expressed gratitude for the settlement, affirming the commitment to holding medical providers accountable for actions that take advantage of claimants and the program. The collaboration between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Arizona was highlighted as instrumental in achieving the resolution.

The civil settlement encompasses claims brought under the qui tam or whistleblower provisions of the False Claims Act by Tonya Cass, a former employee of AHH. Cass, the Corporate Administrator and Director of Human Resource Administration and Management from September 2017 through January 2020, will receive approximately $1.7 million as part of the resolution.

This settlement reflects a coordinated effort to address fraudulent billing practices and kickback schemes in the healthcare industry, emphasizing the commitment to accountability and integrity in federal healthcare programs.

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