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: False Claims Act - Qui Tam

Tennessee USAO files FCA suit against health management company

By Phillips & Cohen LLP

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The U.S. Attorney's Office for the Middle District of Tennessee has filed a False Claims Act suit against Diversified Health Management, Incorporated (Diversified), James W. Carell (the company's president), and the James W. Carell Family Trust.

Diversified acted as the mangement company for three home health agencies. Medicare rules required disclosure of related parties, but Diversied and the home health agencies farudulently concealed the fact that Carell controlled all four entities.

The government is seeking three times the $6.3 million it says it would not have paid had it known of the relationship.

Full post as published by False Claims Act - Qui Tam on June 15, 2009 (boomark / email).

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