Foundations Health Solutions — $19.5M False Claims Act Settlement

Foundations Health Solutions Inc. (FHS), Olympia Therapy Inc., and Tridia Hospice Care Inc., along with executives Brian Colleran and Daniel Parker, agreed to pay approximately $19.5 million to resolve False Claims Act allegations filed by the U.S. Department of Justice. The settlement resolves allegations that from January 2008 through December 2012, Olympia and PSI/BCFL (FHS predecessors) submitted false claims to Medicare for medically unnecessary rehabilitation therapy services at 18 skilled nursing facilities, providing therapy at excessive levels to increase Medicare reimbursement. Additionally, Tridia Hospice was alleged to have submitted false claims for hospice services to ineligible patients from April 2011 through December 2013. Colleran and Parker were also alleged to have solicited and received kickbacks to refer patients to Amber Home Care LLC. As part of the settlement, FHS and Colleran entered into a five-year Corporate Integrity Agreement with the HHS Office of Inspector General. The settlement resolved two whistleblower lawsuits filed under the qui tam provisions of the False Claims Act.