Monday, February 26, 2007
Over-Billing Is Alleged in HealthEssentials Whistle-Blower Suit
The Justice Department plans to intervene in a whistle-blower lawsuit, claiming that HealthEssentials Solutions Inc. of Louisville, Kentucky systematically over-billed Medicare, according to The Courier-Journal. The lawsuit could be a forum for federal officials to try to prove that the now-defunct company owes it $120 million.
Although HealthEssentials has no significant assets, the Justice Department could seek to recover money from former officers or others connected with the company, said Assistant U.S. Attorney Ben Schecter. No criminal charges have been filed against anyone connected with HealthEssentials. Federal agents raided the company’s offices in 2004, and a criminal investigation is ongoing. The raid ended the company’s plans for a public stock offering. It filed bankruptcy in March 2005, says The Courier-Journal.
The whistle-blower lawsuit, pending in U.S. District Court in Louisville, began as three separate lawsuits filed by former HealthEssentials employees in 2003 and 2004. They were combined into one case last year.
Click here to learn more about the allegations in the whistle-blower suits.
Posted by Quitam Help Admin on 02/26 at 01:54 PM
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