Saad Enterprises Inc., doing business as Saad Healthcare, has agreed to pay $3 million to settle allegations that it violated the False Claims Act by submitting false claims for the care of hospice patients in Alabama, the Justice Department announced Feb. 21.

The settlement resolves allegations that between 2013 and 2020, Saad knowingly submitted or caused the submission of false Medicare claims for 21 patients who did not meet hospice eligibility requirements, the department said.

Medicare patients are considered terminally ill and eligible for hospice care if they have a life expectancy of six months or less if their illness follows its normal course, the department stated.

Hospice patients typically forgo curative treatment and instead receive care focused on relieving symptoms, pain and stress from a terminal illness, the department added.

The Justice Department reported that Saad was aware the patients were ineligible but still billed Medicare for their care.

“Respectful and appropriate end-of-life care is the crux of the hospice benefit under Medicare,” said Principal Deputy Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.

“The Department will hold accountable those who exploit this benefit for their own gain.”

Notably, the agreement resolves a whistleblower lawsuit filed under the False Claims Act, which allows private parties to sue on behalf of the U.S. and share in any recovery, the department reported.

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