Yesterday, hospice and home health giant Amedysis held a conference call with the investment community to “discuss preliminary results for the second quarter of 2010 and update the market on the status of the Senate Finance Committee inquiry and Securities and Exchange Commission investigation.” In late April the Wall Street Journal published an article questioning whether Amedisys had committed Medicare fraud. Shortly thereafter, the Senate finance committee began an investigation and subpoenaed documents from the company and from other home health companies, Almost Family and Gentiva. Then on June 30th, Amedisys announced that the Securities and Exchange Commission had subpoenaed documents related to its Medicare billing practices. The conference call yesterday was, in part, intended to address these concerns for investors and analysts. Yet, no real answers were forthcoming, and investors responded to the uncertainty by selling off shares, spiraling the stock price 23%. The stock of what was once the world’s fastest growing company is down 45% since the speculation of Medicare fraud broke in the Wall Street Journal. Meanwhile, the investigation into Amedisys’ alleged practices of billing Medicare for unnecessary therapy services continues. Read the letter request for documents to Amedisys from Senator Grassley, here.
To report Medicare therapy fraud or hospice fraud, contact Frohsin & Barger.
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