DOJ settles with Recovery Home Care for $1.1 million over False Claims Act violation claims

Recovery Home Care (RHC) agrees to $1.1 million settlement for allegedly paying illegal kickbacks to doctors to refer Medicare patients for RHC services. Whistleblower receives $198,000 of recovered funds.

From 2009 to 2012, Mark T. Conklin, former owner of the West Palm Beach, FL company, allegedly paid dozens of physicians to review patient charts and refer them to RHC, regardless of need of and eligibility for RHC services. According to the lawsuit, these physicians spent minimal to no time reviewing the charts and received thousands of dollars in kickbacks every month.

The settlement partially resolves lawsuit allegations made by whistleblower Gregory Simony, a former RHC employee.  The False Claims Act (FCA) permits private individuals to sue on behalf of the government for false claims and share a portion of any recovery. Mr. Simony will receive $198,000 of the recovered funds.

The settlement resulted from a coordinated effort by the Department of Justice’s Civil Division’s Commercial Litigation Branch, the US Attorney’s Office for the Middle District of Florida, and HHS-OIG.

“We will continue to identify, investigate and, where appropriate, sue individuals and corporations that misuse funds meant to provide critical medical services for beneficiaries of federal health care programs,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.

Read the full DOJ press release.

To report Health Care Fraud, please contact Frohsin & Barger.