In a substantial settlement, Tapestry Hospice of Northwest Georgia, LLC, along with its associates, has agreed to pay $1.4 million to resolve accusations of healthcare fraud. The allegations, as reported by the U.S. Department of Justice, involved unlawful kickback deals with medical directors that were supposedly in exchange for referrals of patients to the hospice care provider.
Tapestry's owners and managers, including David Lovell, MD, Stephanie Harbour, Ben Harbour, and Andrew Nall, were implicated in a scheme that the government claimed was designed to influence the medical community to refer patients to their services, potentially sacrificing the best interest of the patients for financial gain. U.S. Attorney Ryan K. Buchanan was quoted, "By entering into kickback arrangements, health care providers can cause doctors to make medical decisions that are motivated by financial gain, rather than the patient’s best interest." Buchanan also stressed his office's commitment to holding such providers accountable for prioritizing their financial needs over patient care, according to the U.S. Department of Justice.
The case surfaced when a former employee of Tapestry, acting as a whistleblower, reported the illicit practices involving monthly stipends and bonuses for the medical directors, closely tied to their referral numbers. This whistleblower was later awarded $252,000 from the settlement for their part in exposing the kickback arrangements.
Special Agent in Charge of FBI Atlanta, Keri Farley, emphasized their intolerance towards fraudulent schemes, asserting, "The FBI will not tolerate companies operating corporate-wide schemes to illegally line their pockets," as stated in the U.S. Department of Justice release. The Anti-Kickback Statute and the False Claims Act are in place to protect the integrity of healthcare programs, and violations like those alleged against Tapestry Hospice threaten to seriously undermine that integrity.
Not only a legal but also a moral issue was underscored by Georgia Attorney General Chris Carr, who remarked on the importance of end-of-life care decisions, and the betrayal felt by families who trust these decisions to providers like Tapestry that are accused of exploiting the system for personal benefit. While the $1.4 million settlement resolves the lawsuit, there has been no formal determination of liability. The claims settled are, at this stage, allegations only.
Investigations into the case were conducted by multiple agencies including the U.S. Attorney’s Office for the Northern District of Georgia, the FBI, and the Georgia Medicaid Fraud Control Unit, leading to the resolution of the matter. The case, which unfolded under the False Claims Act's whistleblower provisions, showcases the critical role that such individuals play in safeguarding ethical standards in healthcare services.
