Arizona Health Care Provider Settles Fraud Allegations for Nearly $10 Million

The Department of Justice recently announced a significant settlement involving Atlantic Home Health Care LLC (AHH), an Arizona-based home health care agency operating in multiple states. The company has agreed to pay $9,990,944 to resolve allegations that it violated the False Claims Act. This case centers around fraudulent activities targeted at the Energy Employees Occupational Illness Compensation Program (EEOICP), a healthcare initiative administered by the Department of Labor for former Department of Energy employees and contractors.

The allegations against AHH, spanning from 2017 to 2021, include false billing for in-home nursing and personal care services that were not actually provided. Additionally, the company was accused of engaging in illegal kickback schemes, offering cash up to $5,000 for patient referrals through its "friends and family program" and providing in-kind payments such as food, internet, travel, and other expenses to patients and their families. These actions are in direct violation of the Anti-Kickback Statute, which prohibits such transactions in federal healthcare programs.

Before the government’s investigation came to light, AHH had voluntarily disclosed its questionable practices to the Department of Health and Human Services Office of Inspector General (DHS-OIG). This proactive step was acknowledged in the settlement agreement. The whistleblower, a former executive of AHH, played a pivotal role in exposing these fraudulent activities and is set to receive approximately $1.7 million (a 17% relator’s share) of the settlement.