Veronica Katz, a 36-year-old San Francisco resident and former owner of HealthNow Home Healthcare and Hospice, has been sentenced to two years in prison for health care fraud, per a recent announcement from the U.S. Attorney's Office. U.S. District Judge James Donato delivered the sentence, which includes a three-year supervised release, restitution payments amounting to $543,634.34, and a $50,000 fine. Katz will start her sentence on January 6, 2025.
In October 2023, Katz was indicted alongside two co-defendants for exploiting Medicare and private insurance companies through false documentation at HealthNow, a Bay Area home health agency she operated. According to her plea agreement, Katz acknowledged her involvement in a fraud scheme using unqualified individuals to complete Start of Care forms and manipulate patient records. This deceit was aimed at billing Medicare for unprovided services, a clear infraction of Medicare rules. Furthermore, Katz urged an employee to lie to the FBI during their inquiry into the company's sketchy billing practices.
The case came to light following meticulous investigations by the FBI, HHS-OIG, and the California Department of Public Health, as noted in the U.S. Attorney's Office announcement. Assistant United States Attorney Christiaan Highsmith, with the help of Helen Yee and Mark DiCenzo, is prosecuting the case.
Katz's co-defendant, Vennesa Herrera, pleaded guilty to her role in the scheme on August 30, 2021, awaiting sentencing on March 17, 2025. Simon Katz, another co-defendant, faces trial on May 12, 2025. It stands as a stark reminder of the systemic vulnerabilities that can be exploited by those entrusted with the care of our community's most vulnerable.
