4:10pm

Tue March 27, 2012
Health and Welfare

Hospice of the Bluegrass Agrees to Settlement

A Lexington company has agreed to pay nearly $700,000 to the U.S. government to settle civil allegations of Medicare fraud.The U.S. Attorney’s Office for the Eastern District of Kentucky announced the settlement Tuesday with Hospice of the Bluegrass. From January 2002 to December 2008, Hospice submitted Medicare reimbursement claims for services performed on patients who did not qualify for Medicare.

Five employees filed a whistleblower lawsuit against the company and will receive a portion of the $685,000  Hospice agreed to pay in the settlement.

In a statement, Hospice of the Bluegrass says it disagrees with government reviewers about the eligibility of care, and chose to settle after weighing the cost and time it would take to litigate the case.