The Dallas-based home health and hospice provider Intrepid USA will pay $3.85 million to resolve alleged violations of the False Claims Act.

The settlement addresses allegations only and no determination of liability has occurred, according to the U.S. Department of Justice. The company was accused of enrolling patients for both home health and hospice services who were not eligible.

“Medicare’s hospice and home health care benefits provide critical services to vulnerable patient populations across the country,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement reflects our commitment to ensuring that these benefits are used to care for those who need them and not just to enrich those who seek to provide them.”

The Justice Department alleges that 19 Intrepid locations between 2016 and 2021 submitted home health Medicare claims for ineligible patients. Three of the company’s hospice locations were accused of admitting patients who were not terminally ill.

Further allegations include providing services by untrained staff or not providing them at all, and continuing to provide services for patients who should have been discharged, according to the Justice Department.

The allegations emerged in two qui tam lawsuits. In a qui tam action, a whistleblower, called a “relator” by the courts, files a False Claims Act suit on behalf of the government and possibly receives a portion of any funds recovered by the government via the lawsuit, typically ranging from 15% to 25%.

“Businesses who engage in improper Medicare billing practices undercut the legitimate provision of health care services for patients in need,” said U.S. Attorney Andrew Luger for the District of Minnesota. “This settlement reinforces the importance of holding accountable health care providers who seek financial gain above quality patient care.”