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Michigan Attorney General Mike Cox Charges Metro Detroit Home Health Care Corporation With Medicaid Fraud

Posted on: Monday, 18 July 2005, 15:01 CDT

LANSING, Mich., July 18 /PRNewswire/ -- Attorney General Mike Cox announced today that he has charged a Metro Detroit-based corporation that provides home health and hourly nursing care with filing false Medicaid claims totaling $895,000. Cox also filed a civil suit against the corporation seeking restitution and penalties that could exceed $3.5 million.

"The Medicaid program provides vital services to some of our most vulnerable citizens," said Cox. "To defraud the system and the people it serves of nearly $1 million is unconscionable. I will do everything in my power to get those funds back into the system where they are needed."

Friends Who Care, Inc. provides physician-ordered services to severely handicapped patients. An investigation by Cox's Health Care Fraud Division revealed that the corporation billed Medicaid for services that were not actually provided. A Medical Services Administration audit of Medicaid claims determined that Friends Who Care had billed more than $750,000 in services, in addition to approximately $145,000 in mileage charges, and that those claims were unsubstantiated in patient files.

Judge David L. Jordon arraigned the corporation July 15 on 35 counts of Medicaid False Claims in East Lansing's 54-B District Court, a four-year felony which also carries a maximum $50,000 fine. Jordon set a $5,000 personal recognizance bond and October 21 at 9:00 a.m. for the preliminary examination.

On July 14, Cox also filed a civil suit against the corporation in Ingham County's 30th Circuit Court seeking restitution in the amount of $895,000, plus treble damages for a total of $3,580,000. The corporation must file its answer to the complaint by August 5 and the case has been assigned to Judge Joyce Draganchuk.

A criminal charge is merely an accusation, and a defendant is presumed innocent until and unless proven guilty.

The Attorney General's Health Care Fraud Division is one of 49 federally certified Medicaid Fraud Control Units. Medicaid fraud investigations and prosecutions include false billings, unlawful delivery of controlled substances, practicing medicine without a license, kickbacks, and bribery schemes. Abuse and neglect investigations and prosecutions include physical assault, criminal sexual conduct, identity theft, theft of residents' property and funds, and harmful neglect in Michigan residential care facilities. The division also initiates civil actions, including asset forfeiture and claims for Medicaid overpayments.

In conducting its activities, the division works closely with other agencies such as the Federal Bureau of Investigation, Drug Enforcement Administration, Department of Justice, Michigan State Police, state regulatory agencies, local law enforcement agencies, and private health insurance companies.

To report Medicaid provider fraud or identity theft/patient abuse in a resident care facility, call the Attorney General's 24-hour Hotline at 800-24-ABUSE (800-242-2873); e-mail hcf@michigan.gov; or visit the Attorney General's Web site at http://www.michigan.gov/ag.

Michigan Attorney General

CONTACT: Allison Pierce of Michigan Attorney General's office,+1-517-373-8060

Web site: http://www.michigan.gov/ag

Source: PRNewswire

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