The Department of Justice accused Bayada Health and Bayada Home Care of undermining the integrity of the healthcare system in a kickback scheme involving two home health agencies in Arizona.
On Wednesday, Bayada agreed to pay $17 million to resolve allegations it violated the False Claim Act’s Anti-Kickback Statute by paying a kickback to a retirement home operator for the purchase of the two agencies.
“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,” Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division said in a statement.
The Justice Department claims Bayada bought the two agencies to influence referrals to Bayada from Medicare beneficiaries living in retirement communities operated by the seller. In a government lawsuit, the department alleges between January of 2014 and October of 2020, Bayada submitted false claims to Medicare for services provided to the beneficiaries referred to Bayada as a result of the kickback scheme.
A former Bayada employee, David Freedman, filed a whistleblower complaint against the company and will receive $3 million dollars from the $17 million settlement.
Moorestown, NJ-based Bayada is one of the nation’s largest nonprofit home healthcare firms, operating in 22 states and 8 countries.
