Amedisys Gamed Medicare System, Shareholders Say

Law360, New York (July 6, 2010, 5:10 PM EDT) -- Executives of hospice service Amedisys Inc. are facing a derivative suit from shareholders who say they breached fiduciary duty through a company practice of giving patients unnecessary care to collect Medicare payments.

CEO William F. Borne, Chief Financial Officer Dale E. Redman and others gamed the Medicare system by instructing workers to visit dying patients more often than necessary, a scheme that cost the company nearly $658 million in decreased market capitalization when reported, according to the suit lodged Friday in the U.S. District Court for...
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