Saad Enterprises Inc., doing business as Saad Healthcare, has agreed to pay $3 million to settle alleged False Claims Act violations.

The claims resolved by the settlement are allegations only and there has been no determination of liability, according to the U.S. Justice Department. The hospice was accused of knowingly submitting Medicare claims for patients who were not terminally ill.

“Respectful and appropriate end-of-life care is the crux of the hospice benefit under Medicare,” said Principal Deputy Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division, in a statement. “The Department will hold accountable those who exploit this benefit for their own gain.”

The settlement resolves allegations that between 2013 and 2020 Saad submitted false claims to Medicare for 21 patients who did not meet the eligibility requirements for the Medicare Hospice Benefit.

The settlement followed the filing of a whistleblower lawsuit by former Saad employees. The two whistleblowers will receive $540,000 of the recouped funds.

This resolution was the result of a coordinated effort amongst the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Southern District of Alabama; and the Department of Health and Human Services Office of Inspector General.

“Caring for terminally ill people is a responsibility the United States and the Medicare program take seriously,” said Acting U.S. Attorney Keith A. Jones for the Southern District of Alabama, said in a statement. “Patients and taxpayers deserve not to be cheated, and the Department of Justice will continue to protect them.”