Earlier this month, the Department of Justice announced a $9.375 million settlement with a Tennessee based health care provider and related organizations. The settlement with James W. Carell, CareAll Management LLC, Care All Inc., the James W. Carell Family Trust, VIP Home Nursing and Rehabilitation Services LLC, Professional Home Health Care LLC, University Home Health LLC, and Elizabeth Vining resolves False Claims Act allegations brought against the companies.
The United States filed the lawsuit against the companies in 2009. According to the complaint, CareAll and its related entities, one of the largest home health providers in Tennessee, submitted false and fraudulent cost reports between 1999 and 2001 to support their Medicare billings. The complaint accuses the companies of hiding the relationship between the management company and the home health agencies. James Carrell owned the management company while his friend, Robert Vining, allegedly served as sham owner of the home health agencies. The complaint further accuses Carell’s management company of having a significant influence and control over the home health agencies. As a result of this alleged behavior and misstated cost reports, the Medicare reimbursement for the management company was significantly higher than it should have been.
Fraud against federal health care programs has become unfortunately common in the past few years. Settlements like this will hopefully serve as a deterrent to future fraudulent activity in connection with government-run healthcare programs. To learn more about what you can do to combat healthcare fraud, visit our website at www.fraudfighters.net.