Wednesday, January 28, 2009

SouthernCare Inc. Settles Hospice False Claims Case

SouthernCare Inc. and its shareholders have agreed to pay the United States a total of $24.7 million to settle allegations that the Birmingham, Ala.-based company submitted false claims to the government for patients treated at its hospice facilities, according to a press release issued by the U.S. Attorney for the North District of Alabama. SouthernCare operates approximately 99 locations that provide hospice services in 15 states. The government alleged that SouthernCare was submitting false claims for hospice care for patients who were not eligible for such care.

The settlement is the result of two False Claims Act cases filed by two former SouthernCare employees, Tanya Rice and Nancy Romeo. The United States will pay $4.9 million to the individuals who filed the actions against SouthernCare.

The investigation was jointly handled by the U.S. Attorney’s Office for the Northern District of Alabama, the U.S. Attorney’s Office for the Northern District of Georgia, the Justice Department’s Civil Division, Office of the Inspector General of the Department of Health and Human Services and the FBI.

1 comments:

Unknown March 12, 2009 at 5:04 PM  

That's about 1/10th of what they probably really owe. QA friend and I quit this company the same day after being SCREAMED at for refusing to admit patients that weren't appropriate. We were stupid enough to just report it to corporate instead of to the government. Corporate investigated and paid us out all of our vacation--wish I would have known about the whistleblower laws then. I estimate 50% of the patients in our office were inappropriate for services

About This Blog

Attorney David G. Schiller maintains this blog to monitor False Claims Act lawsuits brought throughout the United States.

The False Claims Act is a federal law that allows a person (the Act calls “the Relator”) with knowledge of fraud on the U.S. government to bring a lawsuit on behalf of the United States. If successful, the Relator can receive a reward of up to 30% of the recovery.

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