Editor’s note: This article has been updated to include a comment from Curo Health Services.
An Atlanta-based hospice provider will pay almost $6 million to settle allegations of providing care to patients who weren’t dying.
SouthernCare Inc. agreed to pay the penalty under the False Claims Act, after allegations were brought forth by two former employees. They’ve alleged that the company submitted false claims to Medicare for hospice services that were medically unnecessary or lacked the proper documentation, the Department of Justice announced Thursday.
To be eligible for federal payment, hospice care must be deemed reasonable, with a doctor certifying that a patient has six or less months left to live. Whistleblowers alleged that over five years, SouthernCare admitted patients that weren’t dying, treating some for “many years.”
“Unnecessarily admitting people into hospice is particularly dangerous, as it can cause patients who are not terminally ill to stop seeking treatments for recovery,” said Maureen Dixon, special agent in charge for the Office of Inspector General.
The two whistleblowers stand to share about $1.1 million from the payout. In a statement sent Sunday, SouthernCare’s parent company Curo Health Services said that the the settlement agreement involves issues that occurred prior to its acquisition of the company in June 2014.
“At SouthernCare Hospice, our clinicians remain dedicated to providing appropriate and compassionate hospice care. We are pleased to put this issue behind us and focus on providing quality patient care,” spokeswoman Patti Miller told McKnight’s.
