Hospice chain Vitas faces False Claims accusations

The U.S. Justice Department is alleging that Vitas, the largest for-profit hospice chain in the U.S., inappropriately admitted patients for hospice care and billed Medicare for crisis care that was either unnecessary or not actually provided.

The government filed a complaint Thursday in U.S. District Court (PDF) in Kansas City, Mo., against Vitas and its publicly traded parent corporation, Chemed. According to the complaint, the company set goals for the number of crisis care days to be billed to Medicare and pressured staff to meet those goals.

Employees allegedly were paid bonuses for the number of patients they enrolled in the program. The company's philosophy, according a former hospice manager quoted in the complaint, was to “sign everybody up.”

Medicare pays higher rates for crisis care to address acute episodes. The government also alleges that Vitas' marketing intentionally misled patients and their families to believe that Medicare hospice benefits would cover routine “intensive comfort care.” The company often billed Medicare for crisis care when the patients' medical records didn't support any need for it, according to the complaint.

Vitas did not respond to requests for comment at deadline.

The company operates hospice programs in 18 states, which accounted for $1.07 billion of Chemed's $1.43 billion in revenue in the fiscal year ended Dec. 31. About 90% of Vitas' revenue comes from Medicare, according to the filing. Chemed, which also owns Roto-Rooter, reported net income of $89.3 million for the year.