Homestead Hospice has reached a $1.93 million settlement agreement for the company’s alleged involvement in False Claims Act violations.
U.S. District Judge Thomas Thrash Jr. recently released the settlement agreement in a lawsuit brought under qui tam provisions more than a decade ago. These “whistleblower” cases involve alleged violations of the anti-kickback statute and the False Claims Act.
The qui tam lawsuit was filed in 2015 and was extended for nearly a decade before moving forward in a Georgia federal court in 2025. Plaintiffs in the case initially requested a settlement of $1.82 million fees and $13,000 in expenses.
The settlement included the defendants as Homestead Hospice and its affiliates of Creative Hospice Care Inc., Traditions Health LLC, Eshag LLC, the Abdsharafat Family Trust LLC and individuals such as Masoud Pirouz and Nasrin Hashemi.
The settlement agreement included a subset of claims, including a case involving Creative Hospice. The company was found in violation of the anti-kickback statute for submission of false Medicare and Georgia Medicaid claims filed between Jan. 1, 2008 and Dec. 31, 2015. Creative Hospice was ordered to pay $9.2 million in restitution after its medical directors allegedly received monthly stipends and signing bonuses in exchange for referrals.
The investigation of Creative Hospice entities launched when a former employee responsible for their marketing filed a whistleblower complaint alleging the kickbacks. Two additional qui tam complaints were subsequently filed involving similar allegations of submitted false claims.
Payment to the plaintiffs involved in these cases was delayed for several years. The federal judge has awarded the settlement to the plaintiffs after debate over current versus historical market rates to account for the “years-long delay” in payment in the case, according to recent court documents.
Georgia-based Homestead Hospice provides care to more than 2,000 patients annually across 26 locations in Alabama, Arizona, Ohio, South Carolina and its home state. The for-profit company became Medicare-certified in 2007 as Homestead Hospice and Palliative Care. The company provides hospice, respite, as well as palliative and skilled nursing care.
Homestead Hospice was acquired by private equity-backed Traditions Health LLC in 2021. The deal marked Texas-headquartered company’s entry into the Alabama market. Traditions Health was later purchased by four hospice providers in 2025 for an undisclosed amount. Formerly a portfolio company of the investment firm Dorilton Capital Partners, Traditions’ assets were divided among VitalCaring, LifeCare Home Health Family, Mission Healthcare and The Care Team.
Companies featured in this article:
Creative Hospice Care Inc., Homestead Hospice, Traditions Health
