Foundations Health Solutions, Inc. (FHS) is a healthcare company that provides rehabilitation therapy and hospice services. In 2017, FHS and two other companies, Olympia Therapy Inc. and Tridia Hospice Care Inc., agreed to pay $19.5 million to resolve allegations that they submitted false claims to Medicare for medically unnecessary services.
The lawsuit alleged that FHS and the other companies routinely submitted claims for rehabilitation therapy services that were not medically necessary or that were not provided at all. The lawsuit also alleged that FHS and the other companies submitted claims for hospice services for patients who were not eligible for hospice care.
The settlement resolved two whistleblower lawsuits filed against FHS and the other companies. The whistleblowers, a former employee of FHS and a former employee of Olympia, alleged that the companies were engaging in fraudulent billing practices.
In addition to the $19.5 million settlement, FHS and the other companies also agreed to enter into corporate integrity agreements with the Office of Inspector General of the U.S. Department of Health and Human Services. Corporate integrity agreements are designed to prevent companies from engaging in fraudulent billing practices in the future.
Conclusion
The Foundations Health Solutions lawsuit is a reminder that healthcare companies must be careful to avoid submitting false claims to Medicare. Healthcare companies that engage in fraudulent billing practices can face significant consequences, including financial penalties, criminal charges, and exclusion from Medicare and Medicaid programs.
FAQs
What is the Foundations Health Solutions lawsuit?
The Foundations Health Solutions lawsuit is a whistleblower lawsuit that alleged that FHS and two other companies submitted false claims to Medicare for medically unnecessary rehabilitation therapy and hospice services.
How much did FHS and the other companies pay to settle the lawsuit?
FHS and the other companies agreed to pay $19.5 million to settle the lawsuit.
What are corporate integrity agreements?
Corporate integrity agreements are designed to prevent companies from engaging in fraudulent billing practices in the future.
What are the consequences for healthcare companies that engage in fraudulent billing practices?
Healthcare companies that engage in fraudulent billing practices can face significant consequences, including financial penalties, criminal charges, and exclusion from Medicare and Medicaid programs.
Can I file a whistleblower lawsuit if I believe that my employer is engaging in fraudulent billing practices?
Yes, you can file a whistleblower lawsuit if you believe that your employer is engaging in fraudulent billing practices. Whistleblower lawsuits are designed to protect employees who report wrongdoing by their employers.
Who should I contact if I have questions about the Foundations Health Solutions lawsuit or about whistleblower lawsuits?
You should contact an experienced whistleblower lawyer if you have questions about the Foundations Health Solutions lawsuit or about whistleblower lawsuits.
References
- Department of Justice press release: https://www.justice.gov/opa/pr/three-companies-and-their-executives-pay-195-million-resolve-false-claims-act-allegations
- Cleveland v. Foundations Health Solutions, Inc.: https://casetext.com/case/cleveland-v-foundations-health-sols
- Justia docket: https://dockets.justia.com/docket/ohio/ohndce/1:2021cv01713/280799