(KTIV) – Three rural home health care providers in Siouxland have been ordered to pay fines for violating the False Claims Act.
On October 16, 2019, a federal court in Cedar Rapids entered a consent judgment for a total of $3,133,282.95 against five home health providers located in Iowa and South Dakota.
Three of those care health providers are in Siouxland and they are Siouxland Sergeant Bluff Healthcare, Logan Healthcare and Elk Point Healthcare.
Sergeant Bluff Healthcare was fined $1.245,249.01.
Logan Healthcare was fined $775,373.15.
Elk Point Healthcare #1 was fined $788,484.69.
Federal prosecutors say, between 2012 and 2015, the companies submitted false claims to Medicare for therapy services.
They say the claims were false because the services provided were not skilled or because the beneficiaries’ medical conditions did not justify the need for skilled therapy services.
The complaint also said the companies were notified their claims were inordinately high but did not adequately address billing procedures.
The matter arose from an affirmative investigation. False Claims Act cases can also be brought under the qui tam provisions of the Act, which encourages whistleblowers to bring suit on behalf of the United States and share in any financial recovery.