Hospice company with office in Demopolis agrees to pay $19M after lawsuit

Hospice company Gentiva will pay $19.428 million after a lawsuit that accused it of submitting false claims and retained overpayments for services for patients who were not eligible to receive hospice benefits under federal health programs.

In an announcement from the U.S. Attorney's Office for the Southern District of Alabama, Gentiva was described as the "successor" to Kindred at Home, a healthcare provider. Gentiva is headquartered in Atlanta, GA. 

“The hospice benefit under Medicare and other federal health care programs provides critical services to some of the most vulnerable patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will ensure that this important benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.”

Gentiva included entities that had operated Kindred at Home hospice locations under the names of Avalon, Kindred, SouthernCare and SouthernCare New Beacon, the announcement said. 

SouthernCare New Beacon has a location in Demopolis. SouthernCare has locations in Daphne and Mobile. 

“Our office is committed to protecting federal healthcare programs like the Medicare hospice benefit from false claims” said U.S. Attorney Sean Costello for the Southern District of Alabama. “We will hold accountable any providers that abuse taxpayer dollars.”