Amedisys Announces $150 Million Charge Related to Tentative DOJ Settlement

Amedisys, Inc announced its third quarter earnings on November 12, 2013, which included a net income loss. The company said the loss was primarily attributable to a $150 million reserve established as part of a “tentative” settlement with the Department of Justice:

During the third quarter of 2013, we recorded an accrual of $150 million related to the tentative settlement of both the U.S. Department of Justice investigation and the Stark Law Self-Referral matter (the “U.S. Department of Justice settlement”). We have agreed to this tentative settlement without any admission of wrongdoing in order to resolve these matters and to avoid the uncertainty and expense of protracted litigation. In connection with the tentative settlement, we expect to enter into a corporate integrity agreement with the Office of the Inspector General. – HHS

As Fraudblawg previously reported, the Wall Street Journal ran an article in April, 2010, publishing the results of a study conducted by Yale University professor Henry Dove that strongly suggested that Amedisys and other major home health care companies like Gentiva, LHC Group, and Almost Family were “taking advantage” of the Medicare billing system.  

Following the WSJ Article, the Senate Finance Committee mounted an investigation into Amedisys’ Medicare billing practices. As we reported, the Committee later issued a report concluding that the companies had “gamed” the Medicare program.

It now appears that the Department of Justice accepted the Senate Finance Committee’s charge to investigate the situation and is close to reaching a resolution where Amedisys is concerned.