$75 million to resolve allegations regarding False Claims Act (FCA) violations
On October 30, 2017, the Department of Justice announced that Chemed Corporation and its wholly-owned subsidiaries Vitas Hospice Services LLC and Vitas Healthcare Corporation (“Vitas”) agreed to pay $75 million to resolve allegations that defendants violated the False Claims Act (FCA) by submitting false claims for hospice services to Medicare.
Defendant Chemed is a publicly traded company based in Cincinnati, Ohio that owns Vitas – the nation’s the largest for-profit hospice provider and Roto-Rooter (the plumbing and drain-cleaning service). In 2016, Vitas earned $1.12 billion, of which approximately 97% was derived from the taxpayer funded Medicare and Medicaid programs.
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