Siouxland home health providers part of $3.1M judgment in Medicare fraud case

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CEDAR RAPIDS, Iowa (KCAU) – A federal court has entered a judgment of more than $3.1 million against five five home health providers in Iowa and South Dakota, including two in Siouxland, over false Medicare claims.

The five providers are Sergeant Bluff Healthcare, LLC; Red Oak Healthcare, LLC; Logan Healthcare, LLC; Elk Point Health Care #1 LLC; and Flandreau Healthcare 2, LLC, according to the Northern District of Iowa of the U.S. Attorney’s Office. The five companies are affiliates of the Minnesota-based Welcov Healthcare, LLC.

An October 2 complaint alleged that the five companies submitted false claims to Medicare foe therapy service between January 2012 and December 2015. The claims were allegedly false because the provided services were not skilled or because the patients’ medical conditions did not need skilled therapy services. The complaint also said that claims for therapy services were high and that the companies failed to properly address their billing procedures after receiving the notifications.

The judgment total of $3,133,282 will be split against the five companies. The individual judgements are:

  • Sergeant Bluff Healthcare, LLC – $1,245,149.01
  • Red Oak Healthcare, LLC – $228,333.42
  • Logan Healthcare, LLC – $775,373.15
  • Elk Point Healthcare #1, LLC – $788,484.69
  • Flandreau Healthcare 2, LLC – $115,942.46

Welcov Healthcare, LLC is in the midst of assignment proceedings in district court in Minnesota.

The Department of Health and Human Services Office of Inspector General led the investigation as part of an affirmative investigation.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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