A settlement has been reached in a whistleblower class action lawsuit brought against Harmony Care Hospice Inc (Harmony) and Harmony owner and chief executive officer Daniel J. Burton. They are accused of submitting false claims to Medicare for patients under care at its hospice facilities.
Under today’s agreement, Burton is individually liable for $200,000 of the settlement amount. The whistleblowers will receive $244,529.87 as their share of the government’s recovery.
The initial lawsuit was filed by whistleblowers in May 2010. Medicare beneficiaries are entitled to hospice care if they have a terminal prognosis of six months or less. The United States alleged that Harmony and Burton knowingly submitted or caused to be submitted false claims for patients who did not have such a prognosis and thus were not eligible for hospice care.