Ocala, Fla.-based home health services company Village Home Care, the company's CEO and two physicians must collectively pay $491,943.44 to resolve False Claims Act allegations for allegedly paying and receiving kickbacks.
The United States filed complaints in intervention in two whistleblower lawsuits brought under the False Claims Act against Village Home Care and its CEO and majority owner, Joy Rodak, on Jan. 15, 2021, according to a May 23 news release from the Justice Department.
The complaints alleged that VHC and Mr. Rodak knowingly billed Medicare for services for patients referred to the company by Vishnu Reddy, MD, from Nov. 15, 2012, through Nov. 14, 2014, while paying Dr. Reddy under false medical director agreements, according to the release. Dr. Reddy performed no services yet was allegedly paid $50,000 by VHC to persuade him to refer patients to the company.
The United States also alleged that VHC and Mr. Rodak knowingly billed Medicare for services for patients referred to VHC by Kuchakulla Reddy, MD, from Dec. 1, 2012, through March 5, 2014, while paying Dr. Kuchakulla Reddy, through his medical practice, under false sublease agreements, according to the release. VHC did not use the space but allegedly paid Dr. Kuchakulla Reddy $30,971.72 to steer him to refer patients to the company.
To resolve the allegations, Village Home Care agreed to pay $225,000 and Mr. Rodak agreed separately to pay $105,000. Dr. Vishnu Reddy and Dr. Kuchakulla Reddy agreed to pay...
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