BOSTON — Attorney General Maura Healey today announced that home health agency Compassionate Homecare, Inc. has agreed to pay $6.53 million to MassHealth to resolve allegations that it billed MassHealth for services that were not authorized by a physician. In addition, up to $375,000 will be set aside for payment of unpaid wages for former Compassionate employees.
The settlement, which has been approved by the United State Bankruptcy Court, resolves a lawsuit filed by the AG’s Office against Compassionate in March 2018 alleging that the company stole millions of dollars from MassHealth.
“This settlement is a victory for MassHealth and for workers who deserve to be paid back for missed wages,” said AG Healey. “We will continue to protect the integrity of our MassHealth program and ensure compliance with our wage and hour laws.”
Compassionate was formed as a home health agency in 2010. In June 2017, the AG’s Fair Labor Division issued three citations against Compassionate totaling $646,714 in restitution and penalties for failure to pay timely wages and overtime to its employees, and failure to keep true and accurate payroll records.
MassHealth provides healthcare products and services to eligible low-income individuals, including people with disabilities, children, and senior citizens. The program pays for three kinds of home health services for eligible members: nursing, home health aide, and therapy. To bill MassHealth for home health services, the member’s physician must...
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