Healthcare organization Bayada recently agreed to pay $17 million to resolve claims that the organization engaged in a fraudulent kickback scheme.
The allegations arose after the firm purchased a pair of home health agencies from a retirement home group operating in Arizona. The U.S. Attorney’s Office for New Jersey alleged the transaction made in 2014 was performed to induce the seller to refer its Medicaid beneficiaries from retirement homes to Bayada.
Because participants in federal healthcare programs like Medicaid are prohibited from offering benefits for referrals, this would be an example of an illegal kickback scheme.
Prosecutors said Bayada and several of its affiliates submitted false claims for payment to Medicare from January 1, 2014 to October 31, 2016.
The case
Bayada did not admit to any wrongdoing in the settlement, and continues to deny the allegations. It also emphasized that the allegations in the claim had nothing to do with patient care, and that all care provided to patients was medically necessary.
The case was originally brought forth in August 2017 by David Freedman, a former executive for the organization who filed under qui tam provisions of the False Claims act. Freedman was eligible to share in the recovery for his assistance, and as such will receive more than $3 million of the settlement.
He worked for Bayada from 2009 to 2016.
Bayada agreed as part of the settlement to fully cooperate with federal investigations into any parties not covered by the settlement.
To learn more about the steps you can take if you become aware of healthcare fraud occurring within your organization, contact an experienced whistleblower attorney at Kardell Law Group.
