BAYADA Home Health Agency Operator to Pay $ 17 Million to Resolve False Claims for Paying Bribe | Takeover bid

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BAYADA, BAYADA Home Health Care Inc., BAYADA Health LLC, and BAYADA Home Care (collectively, the BAYADA Companies), headquartered in Moorestown, New Jersey, have agreed to pay $ 17 million to resolve allegations they have allegedly made. violated false claims laws. Status by paying a bribe to a retirement home operator by purchasing two of its Home Health Agencies (HHAs) located in Arizona.

The United States alleges that the BAYADA companies purchased both HHAs to induce references to BAYADA from Medicare beneficiaries in vendor-operated retirement communities across the United States, and that from January 1, 2014 to October 31, 2020, BAYADA companies submitted false claims to Medicare for services provided to beneficiaries referred to BAYADA as a result of the bribe transaction.

Parties who pay or receive bribes to induce referrals undermine the integrity of the health care system, said Acting Deputy Attorney General Brian M. Boynton of the ministry’s civil division of Justice. This resolution reflects the ministry’s commitment to protect the right of federal health care program recipients to receive medical care that is not influenced by the financial interests of their health care providers.

When healthcare providers make or induce referrals based on bribe provisions rather than the best interests of patients, they risk harming patients, threaten the integrity of federal healthcare programs, and violate federal law, said Acting Attorney Rachael A. Honig for the District of New Jersey. The United States Attorneys Office for the District of New Jersey and our partners in the Department of Justice and the Office of the Inspector General of the Department of Health and Human Services (HHS-OIG) will continue to prosecute those who, like BAYADA, offer bribes to patients. references, whatever disguise these bribe arrangements might wear.

Anti-recoil law prohibits parties who participate in federal health care programs from knowingly and willfully offering, paying or receiving compensation in order to induce the recommendation of any item for which payment is made in whole or in partly as part of a covered federal health care plan. program. The ban extends to purchases of assets intended to encourage referrals.

The settlement with the BAYADA companies includes the resolution of claims filed under the qui tam or whistleblower provisions of the False Claims Act by David Freedman, who was the former director of strategic growth for BAYADA between 2009 and 2016. Under these provisions , a private party can bring a civil action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution, Mr. Freedman will receive more than $ 3 million. The case remains under seal regarding allegations against entities other than the BAYADA companies.

The resolution obtained in this case is the result of a coordinated effort between the Civil Division of the Department of Justice, the Commercial Litigation Branch, the Fraud Section and the United States Attorneys Office for the District of New Jersey, with the help of HHS-OIG.

The investigation and resolution of this case illustrates the government’s focus on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Advice and complaints from all sources regarding potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).

The case was handled by Fraud Section Trial Attorney Samson Asiyanbi and Assistant U.S. Attorney Daniel Meyler for the District of New Jersey.

The claims resolved by the settlement are only allegations and there has been no determination of liability.

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