Assisted Living Kickback Scandal: $4.5 Million Settlement Reached by Home Health Companies and Federal Government

The Department of Justice announced on Monday that a $4.5 million settlement had been reached between the federal government and a group of home health companies. The settlement includes $2.1 million in restitution from Guardian Health Care Inc., Gem City Home Care LLC, and Care Connection of Cincinnati LLC, along with their owner, Evolution Health LLC.

Between 2013 and 2022, these companies provided lease payments, wellness health services, sports tickets, and meals in exchange for referrals of Medicare beneficiaries to assisted living communities named in the settlement. The kickbacks were allegedly provided to staff members and residents of the assisted living communities as well as 15 healthcare providers in Indiana, Ohio, and Texas.

However, some assisted living providers contacted by McKnight’s Senior Living noted that they were either unaware of the allegations or no longer owned the communities named in the settlement. They explained that assisted living residents are generally the ones who hire home health companies rather than the communities themselves.

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. However, after ceasing this conduct and preserving relevant documents, they filed a supplemental disclosure and cooperated with the government’s investigation into individuals involved in the scheme not covered by the settlement. For their cooperation, they received credit from federal authorities.

The settlement resolves allegations that these home health companies engaged in illegal kickback schemes with assisted living communities named in it