On September 8, 2021, the U.S. Attorney’s Office for the District of New Jersey announced a settlement with BAYADA, BAYADA Home Health Care Inc., BAYADA Health LLC, and BAYADA Home Care (collectively, the BAYADA Companies) for $17 million. The settlement resolves allegations under the False Claims Act and Anti-Kickback Statute. No admissions of liability were made pursuant to the settlement.
The BAYADA Companies are a nationwide network of home health care agencies providing nursing, rehabilitative, therapeutic, hospice, and assistive care service in inpatient and outpatient settings. The U.S. Attorney alleged that BAYADA purchased two home health agencies in Arizona to induce referrals of Medicare beneficiaries from the seller’s other retirement facilities to BAYADA, and alleged that BAYADA submitted false claims to Medicare for services provided to beneficiaries referred as a result of the kickbacks. The identity of the seller was not disclosed.
The case was brought to the U.S. Attorney’s attention in August 2017 by relator David Freedman, a former director of strategic growth at BAYADA. Freedman will receive over $3 million of the total settlement sum, with another $8.5 million marked for restitution.