Regulators Have Eyes Fixed on Hospice Fraud Cases

Hospice organizations and private equity investors are under increasing legal and regulatory scrutiny related to medical necessity complaints under the False Claims Act. A report from Bass, Barry, and Sims shows that a leading cause of fraud involves hospices billing Medicare for services for which patients were not eligible. This resulted in several multi-million dollar […]

U.S. Supreme Court May Hear Hospice False Claims Case

The U.S. Supreme Court is mulling whether it will hear arguments in a False Claims Act (FCA) case involving the hospice provider Care Alternatives. FCA actions pertaining to hospices most commonly focus on questions of a patient’s eligibility for those services. A 2019 report from the law firm of Bass, Barry, and Sims indicated that […]

Amedisys Expanding Palliative Care Operations

Amedisys Inc. (NASDAQ: AMED) has continued to grow its hospice segment despite facing COVID-19 headwinds earlier this year. This expansion deepens an industry-wide trend toward service diversification and a lean towards value-based programming. The company is citing rising demand for palliative care as an impetus for moving into that space. “Palliative care is a nice […]

Hospices Capitalizing on Industry Consolidation

Consolidation is a growing trend in the hospice market, leading to a shrinking number of providers nationwide as smaller hospices get absorbed by larger organizations. Hospice topped other health care sectors in merger and acquisition activity this year, despite economic downturn during the COVID-19 pandemic. While M&A transactions slowed significantly early in 2020 as providers […]

Amedisys Back in the M&A Market After COVID Recovery

Amedisys, Inc. (NASDAQ: AMED) anticipates more hospice merger and acquisitions in 2020 despite raging COVID-19 headwinds. Recovering from a drop in referrals and rising COVID-related costs during the first and second quarters, the company expects their hospice segment to grow consistently in coming years. The company has been very active in the M&A market. Acquisitions […]

MJHS Hospice Settles Whistleblower Action for $5.225 Million

MJHS Hospice and Palliative Care in New York settled a whistleblower case against a former employee under the civil False Claims Act for $5.225 million. The hospice acknowledged resolution of the private citizen action filing in a statement shared with Hospice News. “The allegation was that medical record documentation for hospice levels of care for […]

Hospice Topping Other Health Care Sectors on M&A

Hospice providers are charging ahead with merger and acquisition transactions this year despite taking a few financial punches from the COVID-19 pandemic. While the larger health care M&A market saw more disruption, hospice activity proceeded apace according to a new report from Provident Healthcare Partners. Acquisitions in the health care services sector slowed significantly in […]

Hope Hospice Settles False Claims Case for $3.2 Million

Florida-based Hope Hospice, a subsidiary of Hope Healthcare,  has settled a False Claims Act case with the U.S. Department of Justice for $3.2 million. The Justice Department alleged that the organization knowingly certified patients for hospice care who were not truly eligible and submitted false claims to Medicare, Medicaid and TRICARE, which provides insurance to […]

Amedisys Closes $235 Million AseraCare Deal

Amedisys, Inc. (NASDAQ:AMED) has completed its acquisition of Homecare Preferred Choice, Inc., doing business as AseraCare Hospice. Amedisys acquired 100% ownership of AseraCare for a cash price of $235 million.  AseraCare operates 44 hospice locations throughout 14 states with an average daily census that exceeds 2,100. The company generates $117 million in revenue annually. With […]

Amedisys Poised for COVID-19 Recovery, Further Hospice Growth

The Amedisys, Inc. (NASDAQ: AMED) hospice segment saw a drop in referrals and rising costs stemming from the COVID-19 pandemic during the first quarter of this year. Though the outbreak creates industry-wide uncertainty about the future, demographic tailwinds, de novo activity and acquisitions show promise for a strong recovery, including the company’s $235 million purchase […]