Feds Announce $4.5 Million Settlement with Home Health Companies over Alleged Kickbacks to Assisted Living Communities

On Monday, the federal government announced a $4.5 million settlement with a group of home health companies over allegations of illegal kickbacks. Forty-six assisted living communities, including Guardian Health Care Inc., Gem City Home Care LLC, and Care Connection of Cincinnati LLC, were named as recipients of the alleged kickbacks.

The Department of Justice stated that the kickbacks were provided to staff members and residents of the assisted living communities and 15 healthcare providers in Indiana, Ohio, and Texas. However, some of the assisted living providers contacted by McKnight’s Senior Living said they were either unaware of the allegations or no longer owned the communities named in the settlement. They noted that assisted living residents, not the communities, are generally the ones hiring home health companies.

Just before Amedisys Inc. acquired Evolution Health in 2022, the home health companies disclosed to federal authorities that they had potentially violated the Anti-Kickback Statute. They provided items of value to assisted living communities to operate wellness centers and induce referrals of residents. The home health companies ceased this conduct, preserved relevant documents, filed a supplemental disclosure, and cooperated with the government’s investigation. For their cooperation, they received credit and agreed to cooperate with the ongoing federal investigation into individuals involved in the scheme not covered by the settlement.

This settlement resolves allegations that between 2013 and 2022, home health companies provided lease payments, wellness services, sports tickets