National Hospice Care Company Accused of Fraud

National hospice care company AseraCare, which has 65 hospice providers in 19 states, is facing a lawsuit alleging that it misspent millions of taxpayer dollars intended for patient care. A whistleblower suggests that AseraCare improperly pushed patients through nursing homes and hospice care in order to ensure higher profits for themselves.

The lawsuit was filed last month, and last week, the Justice Department announced that it would join the lawsuit. AseraCare representatives say that the case lacks merit.

Allegedly, employees were pressured to enroll patients in hospice when it was unnecessary, where there was no evidence that they were dying or that their condition was deteriorating. The company is also accused of submitting false claims in order to receive more funds from Medicare.

AseraCare “misspent millions of taxpayer dollars intended for Medicare recipients who have a prognosis of six months or less to live and need hospice care,” violating the federal False Claims Act, said the U.S. Attorneys Office. The False Claims Act allows citizens with knowledge of fraud to file a lawsuit on behalf of the U.S. government and share in the recovery.

An attorney representing AseraCare said, “We are disappointed by the Department of Justice’s decision to intervene … This action is especially troubling because we believe it could constrain certain patients — most notably those who suffer from unpredictable disease — from utilizing the hospice benefit. The allegations contained in the complaint are without merit, and AseraCare operates in full compliance with the law.”

AseraCare also ensures that “Each one of our hospice patients is in our care because two independent physicians have certified his or her eligibility and because the individual has made a decision to focus on care and comfort when a cure is not possible.”