United States Attorney Richard B. Roper
Northern District of Texas

NORTH TEXAS HOSPICE COMPANY TO PAY U.S. TO RESOLVE ALLEGATIONS
IT WAS PAID FOR INELIGIBLE HOSPICE PATIENTS

DALLAS — S-Hospice Group, Inc. d/b/a Home Hospice of North Texas (Home Hospice), located in Decatur, Texas, and principal owners Andrew P. Milligan and Neil F. Livingston, have agreed to pay the U.S. a total of $500,000 to resolve allegations that they violated the civil False Claims Act, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Home Hospice, Milligan and Livingston allegedly violated the Act by submitting improper claims for payment to the Medicare program between January 1, 1998, and December 31, 2002, for hospice-related items and services. By entering into such a settlement, Home Hospice, Milligan, and Livingston do not admit any wrong-doing and deny all liability.

After an investigation by the Office of Inspector General for the Department of Health and Human Services (OIG), the U.S. alleged Home Hospice: (1) was paid for claims for unallowable hospice items and services; (2) misrepresented to Medicare the medical conditions of patients to ensure such patients would be or continue to be patients; (3) misrepresented to physicians the medical conditions of patients to ensure they would certify or continue to certify that patients were appropriate for admission; and (4) misrepresented the purpose of and coverage criteria of Medicare’s hospice benefit to ensure patients were or continued to be admitted for hospice care.

Home Hospice, Milligan and Livingston cooperated fully with the government during its investigation. Based on financial information provided in part by Home Hospice, Milligan and Livingston, the U.S. concluded that their demonstrated financial difficulties warranted a significant reduction of the settlement amount, and agreed to allow them to make payments over several years.

As part of the settlement, Home Hospice, Milligan and Livingston also entered into a five-year Corporate Integrity Agreement (CIA) with the OIG. The CIA requires they adhere to certain policies and procedures to ensure compliance with applicable statutes and regulations that govern the use of federal health care funds.

U.S. Attorney Roper praised the investigative efforts of the OIG. The case was handled by Assistant U.S. Attorney Sean R. McKenna.

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