Home Health Co. To Pay $25M To Settle Medicare FCA Suit

Law360, New York (November 12, 2014, 6:57 PM EST) -- Tennessee-based CareAll Home Care Services LLC will pay $25 million to settle a whistleblower’s False Claims Act suit alleging it predetermined its desired profit margins and billed Medicare as much as needed to hit those targets, the U.S. Department of Justice announced Wednesday.

The deal stems from a complaint originally brought in 2012 by onetime CareAll nurse Toney Gonzales, who claimed he was demoted for refusing to authorize unnecessary home health services and who will receive nearly $4 million for bringing the alleged scheme to light.

An amended complaint filed in August asserted that wrongdoing “spans the entire system” at CareAll’s...

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