A settlement has been reached in a whistleblower class action lawsuit brought against Recovery Home Care Inc, Recovery Home Care Services Inc. (collectively Recovery Home Care) and National Home Care Holdings LLC who are accused of improperly paying doctors for referrals of home health care services provided to Medicare patients.
The whistleblower will receive $198,000 of the recovered funds.
The governments lawsuit, filed in 2012, alleged that from 2009 through 2012, Recovery Home Care paid dozens of physicians thousands of dollars per month to perform patient chart reviews. Additionally, the complaint claims that the physicians were over-compensated for any actual work they performed and, in reality, payments to the physicians were used to induce them to refer their patients to Recovery Home Care, in violation of the Anti-Kickback Statute and the Stark Law.
