Medicare Compliance & Reimbursement

Enforcement Watch:

Bankruptcy Filing Won't Wash Sins Of Fraud

Providers assets could be confiscated, sold to pay fraud fines.

Healthcare providers looking to buy a home healthcare business should know the federal government has four up for sale.

After HealthEssentials Solutions, Inc. agreed to settle Medicare and Medicaid fraud allegations, the company and its subsidiaries filed for bankruptcy, the Department of Justice announced on Sept. 2. Fraudsters Say 'Bye-Bye' To Businesses To obtain the $1.85 million fine included in the settlement from HES, the federal government plans to sell the company's assets--mainly its four home healthcare subsidiaries: Specialized Home Healthcare Services of Central Florida, Inc.; MAJJ Enterprises, LLC; Best Choice Home Care Naples, LLC; and HealthEssentials Home Care, LLC.

The federal government and the former HES employees who filed whistleblower lawsuits against the company will release HES' subsidiaries from any civil or administrative monetary claims in exchange for the $1.85 million--if the bankruptcy courts agree to the arrangement.

The settlement arises from four former HES employees' three separate whistleblower lawsuits that they filed in 2003 and 2004, which alleged that the company defrauded Medicare, Medicaid and other federal healthcare programs.

Find it online: To read the news release, go to http://www.usdoj.gov/usao/kyw/PressReleases.htm.
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