A False Claims Act lawsuit that has been hanging over a major hospice provider since 2008 has finally been resolved.
AseraCare will have to pay $1 million in a settlement agreement with the Department of Justice to resolve the long-running dispute, the company announced Thursday.
The case stems from a whistleblower lawsuit filed against AseraCare that claimed it knowingly submitted false Medicare claims for patients who weren’t medically eligible for hospice care. The whistleblowers argued that many patients weren’t terminally ill at the time of certification and the company’s claims were false under the False Claims Act.
Thursday’s announcement comes months after the U.S. appeals court sided with the provider in a September ruling.
The court agreed with the previous ruling that a clinical judgment cannot be deemed as fraud under the False Claims Act based on a difference of physician opinions.
AseraCare in a statement said it is grateful for the settlement agreement, adding that its “perseverance produced a benefit to the hospice industry that provides more clarity under the False Claims Act” following that September ruling.
The settlement agreement does not require a corporate integrity agreement.
