INDIANAPOLIS - American Senior Communities, L.L.C. has agreed to pay over $5.5 million to resolve allegations that it violated the False Claims Act by submitting false claims to the Medicare program.
The company has locations throughout Indiana, including facilities in Terre Haute, Clinton, and Washington.
According to the United States Attorney’s Office Southern District of Indiana, in 2017, a former employee of a hospice services company working with American Senior Communities, L.L.C. (ASC) filed a “whistleblower” lawsuit under the False Claims Act. The complaint alleged that ASC was charging Medicare for therapy services provided to hospice patients, when those services should have already been covered by the patients' Medicare hospice coverage.
The estimated loss to the Medicare program was $2,795,522.33. ASC has agreed to pay $5,591,044.66 to the United States.
Under the False Claims Act, provides that when a whistleblower files a lawsuit alleging fraud that results in a recovery of funds by the Government they are entitled to between 15 and 25% of the recovery. This whistleblower provision of the law encourages people to come forward when they believe fraud is being committed. Under the False Claims Act, the Government may collect up to three times the loss it incurred, plus a fine of between approximately $5,500 to $22,000 for each false bill submitted.
“Whistleblowers are critical to protecting public funds from fraud, waste, and abuse,” said U.S. Attorney...
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