A hospice care company owned partially by a San Francisco based private equity firm has been accused of cheating Medicare of a large amount of money. A legal complaint has been filed against the hospice, called AseraCare, by the US Department of Justice for the fraud.
AseraCare Illegally Certified Patients for Medicare Payments
According to the charges brought against AseraCare, it illegally certified patients to collect payments from Medicare. The hospice care company has been involved in such fraudulent activities since 2007. Through its deceitful business, AseraCare admitted patients and retained those who were not eligible to receive Medicare payments. AseraCare's auditor alerted the company regarding the illegal activities it had been carrying out. But AseraCare continued with its fraudulent business. Millions of Medicare dollars have been spent illegally.
Hospices Receive Medicare Payment worth $13 Billion Every Year
Hospices offer spiritual and psychological services to patients who will live for less than 6 months. Medicare funding worth $13 billion is spent on hospice care per year. About 1.5 million Americans approach hospice care centers every year. Among them, around 91,000 are based in California.
Former AseraCare Hospice Executive Filed Lawsuit against the Organization
A lawsuit was filed against AseraCare Hospice by its former executive and a nurse who was associated with the company. According to attorneys involved in the case, fraudulent practices take place throughout the organization.
More cases have been filed regarding fraudulent practices that took place in AseraCare Hospice. The organization is a subsidiary of Golden Living. It is a company providing health care services to nursing homes as well as home health care. 1% of Golden Living shares are owned by a private equity firm based inSan Francisco. 99% of Golden Living is owned by Washington State Investment Board.
Cases have been filed against Golden Living. It has about 3 hospice services in Concord, Stockton and Fresno.