The Moorestown, New Jersey-based Bayada Home Health Care has agreed to pay $17 million to resolve False Claims Act allegations, the U.S. Department of Justice announced Wednesday.
The settlement resolves DOJ’s allegations that Bayada violated the Anti-Kickback Statute by paying a kickback to a retirement home operator by purchasing two of its home health agencies located in Arizona.
“Parties who pay or receive kickbacks in order to induce referrals undermine the integrity of the health care system,” Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division said in a statement. “This resolution reflects the department’s commitment to protect the right of federal health care program beneficiaries to receive medical care that is not influenced by the financial interests of their health care providers.”
Bayada agreeing to pay $17 million is not an admission of guilt or wrongdoing, the DOJ was careful to note in its announcement.
“While Bayada does not believe it has done anything wrong and continues to deny the allegations, the company recently entered into a settlement with the federal government to avoid the significant expense of protracted litigation and allow our focus to remain on providing high-quality home health care to our patients,” a spokesperson for the provider told Home Health Care News in an email.
The DOJ allegations claim Bayada bought the two Arizona home health agencies to secure patient referrals from retirement communities operated by the seller throughout the United States from Jan. 1, 2014, through Oct. 31, 2020.
“When health care providers make or induce referrals that are based on kickback arrangements rather than the best interests of patients, they risk patient harm, threaten the integrity of federal health care programs and violate federal law,” Acting U.S. Attorney Rachael A. Honig for the District of New Jersey said.
Bayada provides home health, hospice and personal care services through its 28,000 nurses, home health aides, therapists and social workers. Its network includes 350 locations in 22 states, with additional locations in Canada, Germany, India and four other countries.
The Anti-Kickback Statute prohibits parties who participate in federal health care programs from “knowingly and willfully offering, paying or receiving any remuneration in order to induce the recommendation of any item for which payment is made in whole or in part under a covered federal health care program.”
The prohibition extends to asset purchases that are intended to induce referrals, according to the DOJ.
“It is important to note that the allegations in this matter do not relate in any way to patient care,” the spokesperson told HHCN. “All of the care provided to our patients was medically necessary, and neither the relator nor the government have alleged anything to the contrary.”
The settlement includes the resolution of claims brought under a False Claims Act whistleblower case from David Freedman, who was the former director of strategic growth for Bayada between 2009 and 2016. As part of the resolution, Freedman will receive more than $3 million.
The DOJ additionally noted that the matter remains under seal as to allegations against entities other than Bayada.
“As a leading not-for-profit provider of in-home health and support services, we take our responsibility to comply with all laws governing home health care providers seriously,” the spokesperson continued. “Bayada is fully committed to our mission to deliver quality care with compassion, excellence and reliability to help people live safely at home with comfort, independence and dignity.”
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