Two home health providers, Medical Services of America, Inc. and Traditional Home Care, Inc. (operating as Community Home Health Services), have agreed to pay $702,541.20 to settle allegations of violating the Stark Law. The claims stated that the companies provided bonuses to an employee for referrals made by the employee’s physician spouse, which is prohibited under the law, according to U.S. Department of Justice.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida stated that the Stark Law is intended to ensure that medical decisions are based on patient needs rather than financial relationships. Whistleblower Javier Figueroa is expected to receive approximately $126,457 for reporting the alleged misconduct.
The scheme, which occurred from February 2017 through February 2025, involved a physician referring Medicare patients to Community Home Health Services. Services were provided, and claims were submitted to Medicare. These actions were found to violate the Stark Law, which prohibits billing for services resulting from referrals by a physician who has a financial relationship with the entity, unless an exception applies.
Of the total settlement, $379,752 will be designated as restitution. The settlement was announced jointly by U.S. Attorney Jason A. Reding Quiñones and Acting Special Agent in Charge Jesus Barranco of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office. Assistant U.S. Attorney H. Ron Davidson, along with former Assistant U.S. Attorney Christopher Cheek, handled the litigation.
Relevant documents for the case can be accessed on the District Court for the Southern District of Florida’s website at www.flsd.uscourts.gov or via http://pacer.flsd.uscourts.gov under case number 23-cv-81328.
