Editorial: Illinois’ home health care hustle

http://www.chicagotribune.com/news/opinion/editorials/ct-edit-home-health-care-20171214-story.html

Image result for home health care fraud

For those who are ailing but hope to stay out of nursing homes or hospitals — and who wouldn’t? — there’s an increasingly popular alternative: home health care providers. These are doctors, nurses and other medical staffers who visit patients at home, with the goal of treating chronic conditions and keeping people healthy enough to avoid costly long-term stays in more intensive facilities. That saves patients, and the health care system, money.

But, as with all things in the health field, there are plenty of caveats for potential customers.

Illinois is a field of dreams for home health care fraud, the Tribune’s Michael J. Berens reports. Why? Because state public health regulators doled out too many home health licenses too fast in the past decade. The state allowed almost anyone with a $25 licensing fee to open a home health care business but fails to provide meaningful oversight on hundreds of operators. You can find Berens’ full report at chicagotribune.com/homehealth.

The upshot of lax oversight: In the last five years, area home health agencies have improperly collected at least $104 million in Medicare dollars, Berens reports. (Most patients in home health care are covered by Medicare.) Often the home health businesses did that by falsely certifying that Medicare patients were homebound and in need of nursing care.

But the problem here isn’t measured only in Medicare dollars wasted. It’s measured in patients at risk or harmed. Thousands of patients have been subjected to unwarranted procedures, therapies and tests; some were prescribed unneeded and powerful drugs, the Tribune analysis concludes.

So what can patients, and their families, do to protect themselves? How can someone in Illinois — or her family — shop smartly for a home health care provider? It’s not easy, but here are a few tips:

  • First, you can check a federal website that offers star ratings for home health providers at medicare.gov/homehealthcompare.
  • Then, be vigilant. Make sure a home health care agency coordinates care with your existing primary physician. If a home health care company makes lots of visits but does little more than check your blood pressure, be wary.
  • Check your monthly Medicare statement to monitor services that a home health care company claims to have provided.

On average, some 10,000 Americans turn 65 every day. That means the market for home health will likely continue to surge, placing greater demands on regulators.

In 2013, the federal government banned Illinois from issuing new licenses. The feds said that fraud was rampant, driven by too many home health companies for too few patients. Still, Cook County has more home health companies than the entire state of New York.

Many companies provide excellent care for their customers. The industry’s trade association, the Illinois Homecare and Hospice Council, represents about 160 providers (among the 750 or so licensed in the state).

“We support the moratorium,” Executive Director Sara Ratcliffe told the Tribune. “We want more enforcement.”

So do we. This field of dreams needs to be weeded of fraudsters. At least 357 active home health companies in the Chicago area have been linked to potential financial fraud by federal investigators but never charged.

That’s a daunting fact for families and patients seeking home health care. The state could help prospective patients by posting disciplinary and enforcement actions on the web. More sunshine — readily available information on providers’ performance and disciplinary records — would help them make a wise choice.

 

20 charged in $146M healthcare fraud scheme in Brooklyn

https://www.fiercehealthcare.com/antifraud/healthcare-fraud-scheme-164-million-brooklyn?mkt_tok=eyJpIjoiT1RZNE9HVmhObVZoTW1ReSIsInQiOiJJOVIwamhJUzZScW1XQVhjb09IakYzbWNrWVZcL1gzYlwvMm15RWllNnlxYlJkbzNoT09CblgwMWYrcVdXS2N4Q2tyeHBKa2hQeXBtRDNwQktDK0NSQ3NSOUpzRUV4VG91RjF1Z0lIdjZIK0NCaTY3UURTUHV2VnFxZzRHRjZlalJhIn0%3D&mrkid=959610&utm_medium=nl&utm_source=internal

Money, handcuffs and a stethoscope

Twenty people—four of whom are doctors—are facing charges related to a massive fraud scheme that bilked Medicare, Medicaid and other managed care organizations out of $146 million.

Prosecutors from the Brooklyn District Attorneys Office said the defendants ran an enterprise in which recruiters offered cash to low-income and homeless patients to get them to undergo a series of medically unnecessary tests at participating clinics.

They then allegedly billed publicly funded insurance programs for performing those tests and laundered the fraudulently obtained funds through the bank accounts of a series of shell companies in far-flung countries such as Taiwan and Lithuania.

Once that money reached the defendants, prosecutors said, they used it to buy expensive real estate—such as a $3.25 million apartment in downtown Brooklyn, New York—and fund shopping sprees at high-end stores like Hermes and Bulgari.

“This massive scheme, which provided no patient care at all, wasted millions of taxpayer dollars dedicated to Medicaid and Medicare,” Acting Brooklyn District Attorney Eric Gonzalez said in the announcement.

The investigation began following a referral from the Department of Health and Human Services Office of Inspector General. To uncover the alleged scheme, investigators employed undercover detectives, intercepted communications and conducted surveillance and financial analyses.

The defendants are facing charges including enterprise corruption, healthcare fraud, grand larceny and money laundering. Prosecutors said 35-year-old Kristina Mirbabayeva, of Brooklyn, was the ringleader of the scheme, and 53-year-old New Jersey resident Kevin Custis, M.D., was her business partner.

Another one of the doctors charged, 61-year-old Robert Vaccarino, was also employed as a New York Police Department surgeon, according to The Wall Street Journal. The police department said Tuesday that Vaccarino had been suspended.

At a news conference this week, representatives from the Brooklyn District Attorneys Office said the scheme was the biggest healthcare case in the office’s history, the article added.

In other antifraud news:

Prosecutors insist Florida eye doctor stole $136M from Medicaid

The attorney for Salomon Melgen, M.D., a Florida eye doctor who has been convicted of a $100 million Medicare fraud, argued at a sentencing hearing on Thursday that the government has only proven Melgen stole about $64,000.

Attorney Josh Sheptow said Melgen—who was charged separately with bribing New Jersey Democratic Sen. Bob Menendez—injected patients with then-experimental drugs that are now approved, the Associated Press reported. Sheptow suggested Melgen may have falsified billing statements to get around the fact that Medicare doesn’t pay for experimental treatments—so since the treatments were actually legitimate, the government didn’t lose money on paying for them.

But Assistant U.S. Attorney Alexandra Chase argued that the judge should accept the government’s estimate that Melgen stole $136 million, noting that even if he stole half as much, he would be eligible for a life sentence. Prosecutors are asking for a 30-year sentence.

 

Florida health administrator charged in $1B fraud case

http://www.fiercehealthcare.com/finance/florida-health-administrator-charged-1b-fraud-case?utm_medium=nl&utm_source=internal&mrkid=959610&mkt_tok=eyJpIjoiTkdWbE16bGlOMlJrWWpKaSIsInQiOiJWYVwvZWxBWjZGWEREN3BuSHBkNGZHN3ZqUVJNcWVzTVEwRDk5TWV6OVBkQ1RoZGhuVmlRbXFWMmpVMFgyb1NhbDNDeEhtYUVaaEdJVXBZXC9MWEpqUlZcLzR6WU9kQkowUk5OS1hcL1BcL21oSnphRXMrOFwvOHRhekVyQ2dlbktSc2pLdiJ9

Dollars

Bribes paid to a state health administrator are central to one of the biggest healthcare fraud cases to date, according to federal authorities.

The Department of Justice has charged Bertha Blanco, a former employee at Florida’s Agency for Health Care Administration (AHCA) with bribery in connection with a $1 billion Miami fraud case. Federal investigators said Blanco received bribes from Philip Esformes, the CEO of a Miami chain of skilled nursing facilities and assisted-living facilities, and his associates.

Blanco received cash bribes from Medicare and Medicaid providers in exchange for confidential AHCA reports, including patient complaints and unannounced AHCA inspection schedules that were then used to make false Medicare and Medicaid claims, according to DOJ. Blanco did not receive payouts directly from Esformes but through a series of intermediaries, the Miami Herald reports.

Esformes, who made FierceHealthcare’s list of notorious healthcare executives last year, has been charged with fraud and bribery in the case. He has been behind bars in federal prison since July 2016 awaiting a trial set for March 2018.

Assistant Attorney General Leslie R. Caldwell called the scheme “ruthlessly efficient,” with conspirators using a network of corrupt providers to shuffle patients between various healthcare facilities while exchanging kickbacks disguised in various sham agreements, as FierceHealthcare has previously reported.

Blanco’s defense attorney Robyn Blake told the Herald that she is reviewing the DOJ’s evidence before deciding to pursue a full trial or take a plea deal. Blanco was arrested earlier this month and was released on $250,000 bond; she will be arraigned on Sept. 1.

Esformes’ attorneys maintain his innocence, according to the Herald. Two of the Esformes’ alleged co-conspirators have pleaded guilty to Medicare fraud charges, and Michael Pasano, Esformes’ lead attorney, said the pair worked independently without Esformes’  involvement.

Another fraud case: Vanderbilt Hospital settles overbilling suit

In other fraud news, Vanderbilt University Medical Center has paid out $6.5 million to settle a federal lawsuit that alleged the hospital overbilled Medicare and Medicaid, the Associated Press reports.

The suit was brought in 2013 by whistleblowers who claimed the hospital overbilled federal healthcare programs for more than a decade. Vanderbilt’s counsel, Michael Regier, said that the settlement aimed to avoid further costs and distractions related to the suit, according to the article, and that the hospital still disputes the claims in the lawsuit.

The hospital and the feds found no evidence of wrongdoing on Vanderbilt’s part, Regier said.

Victims Seek Payments As ‘Dr. Death’ Declares Innocence

http://khn.org/news/victims-seek-payments-as-dr-death-declares-innocence/

Farid Fata

Victims of “Dr. Death” had until this week to submit receipts for unnecessary chemotherapy, medical bills for liver damage and funeral expenses for their loved ones. By an initial count on Tuesday, 517 former patients and their families had filed claims against Farid Fata, the Detroit-area cancer doctor convicted of raking in over $17 million by poisoning patients with chemotherapy and other drugs they did not need.

Fata was branded by prosecutors as “the most egregious fraudster” in U.S. history for scamming Medicare and private insurers by giving at least 553 patients, some of whom did not have cancer, thousands of doses of unnecessary and expensive drugs. Now he insists he did nothing wrong. Breaking his silence in a jailhouse interview, Fata said victims claiming he killed loved ones or ruined their lives are misguided and that those who died were “going to die anyhow because of the nature of the diseases.”

Fata, nicknamed “Dr. Death” by his victims, is serving a 45-year sentence in a federal prison in South Carolina after pleading guilty to 13 counts of health care fraud, one count of conspiracy to pay or receive kickbacks and two counts of money laundering. He ran one of Michigan’s largest private cancer practices, with a network of clinics outside of Detroit, from 2005 to 2013.

The 51-year-old prisoner told Kaiser Health News he plans to speak in court at a Jan. 17 restitution hearing and declare his innocence. Fata said his guilty plea in 2014 came under duress, and he is preparing to seek freedom through a habeas corpus petition, by which a judge would determine if his detention is lawful.

http://www.beckershospitalreview.com/legal-regulatory-issues/physician-claims-innocence-after-admitting-he-administered-unnecessary-chemotherapy-to-patients.html

 

Brooklyn surgeon in Medicare billing scheme convicted of fraud, faces 40 years in prison

http://www.nydailynews.com/new-york/nyc-crime/brooklyn-surgeon-convicted-medicare-fraud-faces-40-years-article-1.2731355

Dr. Syed Ahmed faces over 40 years in prison.

A Brooklyn surgeon is facing more than 40 years in prison after a federal jury convicted him of a massive Medicare fraud that included claims he’d performed 600 procedures on one person.

Dr. Syed Ahmed was found guilty of all six counts late Thursday night in Brooklyn Federal Court. The jury had deliberated about four hours.

Prosecutors alleged that Ahmed, a specialist in weight loss surgery and wound treatment, billed Medicare for over $7 million in procedures, many of which were not performed on patients, prosecutors alleged.

Assistant U.S. Attorney Patricia Notopoulos told the jury that Ahmed billed Medicare for 5,000 surgeries over a three-year period, including 600 alleged procedures on an elderly woman.

3 charged in $1 billion scheme to defraud Medicare in Florida, DOJ dubs biggest ever

http://www.healthcarefinancenews.com/news/3-charged-1-billion-scheme-defraud-medicare-florida-doj-dubs-biggest-ever

The owner of more than 30 Miami-area skilled nursing and assisted living facilities, a hospital administrator and a physician’s assistant were charged with conspiracy, obstruction, money laundering and healthcare fraud in connection with a $1 billion scheme involving numerous Miami-based providers, the United States Department of Justice announced.

Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division said in a statement that the charges represent the largest single criminal healthcare fraud case ever brought against individuals by the DOJ.

Philip Esformes, 47, Odette Barcha, 49, and Arnaldo Carmouze, 56, all of Miami-Dade County, Florida, were charged in an indictment claiming that Esformes operated a network of more than 30 skilled nursing homes and assisted living facilities known as The Esformes Network, which gave him access to thousands of Medicare and Medicaid beneficiaries.

Houston physician gets 3-year prison term for fraud

http://www.beckershospitalreview.com/legal-regulatory-issues/houston-physician-gets-3-year-prison-term-for-fraud.html

Fraud

301 people charged in massive $900 million false billings Medicare fraud

http://www.healthcarefinancenews.com/news/301-people-charged-massive-900-million-false-billings-medicare-fraud

More than 60 of the defendants arrested are charged with fraud related to the Medicare prescription drug benefit program known as Part D.

Consulting firm president gets 5-year prison term for role in kickback scheme

http://www.beckershospitalreview.com/legal-regulatory-issues/consulting-firm-president-gets-5-year-prison-term-for-role-in-kickback-scheme.html

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According to evidence presented at trial, Mr. Nerey referred Medicare beneficiaries to two home healthcare companies in return for kickbacks. Some of the patients he referred did not qualify for home healthcare services. Mr. Nerey was involved in the kickback scheme from October 2014 to September 2015, according to the DOJ.

In addition to his prison term, Mr. Nerey was ordered to pay more than $2.3 million in restitution.

Houston psychiatrist sentenced 12 years for $158 million Medicaid fraud

http://www.healthcarefinancenews.com/news/houston-psychiatrist-sentenced-12-years-158-million-medicaid-fraud?mkt_tok=eyJpIjoiWWpNeFlqZ3hOekZrTW1NNSIsInQiOiJrbUR5S0JXcWFyQW1VcHhDZWxNbGJoOFI5cUdJZmdSdmNXOFV4cGRNSnpsTVBYQ0pMcEhrb2hTbkwyVUlHYUdLT2JPVTNXRFl1Q0p2NUdEMHZ5RTNpTmluU2VyYmRWOTFjZWZZVXp2ejQ5dz0ifQ%3D%3D

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Sharon Iglehart was also ordered to pay more than $6 million in restitution, Department of Justice says.