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HHS Says $2.4+ Billion in Fraud Recovery in Past 6 Months

June 16, 2009

The Office of Inspector General for the Department of Health and Human Services just issued its Semiannual Report, which reports more than $2.4 billion in expected recoveries for the first half of 2009 alone from fighting fraud, waste, and abuse in the federal healthcare system. More than half of that comes from the $1.4 billion recovery from Eli Lilly for promoting its drugs for non-FDA-approved uses, but a June 8, 2009 OIG press release and the report also cite other major cases involving pharmaceutical fraud, durable medical equipment fraud, nursing home fraud, and hospice fraud: highlighting Frohsin & Barger’s near $25 Million settlement with one of the country’s largest hospice providers, SouthernCare. According to the OIG report:

SouthernCare, Inc. (SCI); SouthernCare Holdings, Inc.; SouthernCare Carry, LLC; and Michael Pardy agreed to pay the United States $24.7 million and enter into a 5-year CIA to resolve their FCA liability for allegedly submitting false claims to Medicare. Operating in locations in 15 States, SCI allegedly submitted claims for treating patients who did not meet Medicare’s hospice eligibility criteria. This settlement resolved allegations in two qui tam lawsuits filed by former SCI employees.

Download the full OIG report, here.  To report healthcare fraud in general or hospice fraud in particular, contact Frohsin & Barger.

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