tci Medicare Compliance & Reimbursement - 2006 Issue 11

FRAUD & ABUSE: Hospice Chains Shell Out $13 Million Each In Settlements

Lawsuit, DOJ take bites out of VITAS and Odyssey earnings.The backlash against the booming hospice industry seems evident in two recent settlements.Miami-based VITAS plans to settle a class action Fair Labor Standards Act Wage and Hour lawsuit pending in California for $13.1 million, while Dallas-based Odyssey HealthCare Inc. plans to pay $13.0 million to settle a previously announced Department of Justice investigation.VITAS has tentatively agreed to the lawsuit settlement in light of "a significant increase in litigation, high settlements and unfavorable verdicts against companies involving wage-hour claims in California," Cincinnati-based parent Chemed Corp...

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