On October 30, 2017, Chemed and several of its subsidiaries, including Vitas Hospice Services LLC and Vitas Healthcare Corporation (Vitas), entered into a $75 million settlement to resolve allegations that Vitas submitted false Medicare claims. The settlement is the largest False Claims Act settlement by a hospice services provider.

Hospice care may only be provided to beneficiaries with a terminal illness who elect palliative treatment and have a life expectancy of six months or less. The settlement resolves allegations that Vitas submitted false claims to Medicare for hospice services provided to patients who were not terminally ill. The government also alleged that Vitas encouraged employees to increase the number of hospice patients without regard to whether the patient was terminally ill. Vitas also allegedly billed for unnecessary continuous home care services.

In addition to the monetary settlement, Vitas entered into a five-year corporate integrity agreement with the U.S. Department of Health and Human Services’ Office of Inspector General.

DOJ’s Press Release is available here.