Sean P. Costello U.S. Attorney | U.S. Attorney for the Southern District of Alabama
Saad Enterprises Inc., operating as Saad Healthcare, has agreed to a $3 million settlement over allegations of violating the False Claims Act. The company was accused of submitting false claims for hospice care under Medicare for patients in Alabama who were not terminally ill and thus ineligible for the benefit.
Hospice care is designed to provide comfort to terminally ill patients, focusing on symptom relief rather than curative treatment. Medicare defines hospice-eligible patients as those with a life expectancy of six months or less if their illness follows its usual course.
"Respectful and appropriate end-of-life care is the crux of the hospice benefit under Medicare," stated Principal Deputy Assistant Attorney General Brett A. Shumate from the Justice Department’s Civil Division. "The Department will hold accountable those who exploit this benefit for their own gain."
Acting U.S. Attorney Keith A. Jones for the Southern District of Alabama emphasized, "Caring for terminally ill people is a responsibility the United States and the Medicare program take seriously. Patients and taxpayers deserve not to be cheated, and the Department of Justice will continue to protect them."
The settlement addresses allegations that between 2013 and 2020, Saad submitted false claims for 21 patients who did not meet Medicare's eligibility criteria for hospice care, despite knowing they were ineligible.
This civil settlement concludes a lawsuit filed under the qui tam provision of the False Claims Act, which allows private individuals to sue on behalf of the government and share in any recovery. The lawsuit was brought by former Saad employees Melissa Wolff and Whitney Sims, titled United States ex rel. Wolff & Sims v. Saad Enterprises, Inc., Case No. 1:19-cv-00040 (S.D. Ala.). They will receive $540,000 from the settlement.
The resolution was achieved through coordinated efforts by various branches of the Justice Department along with the Department of Health and Human Services Office of Inspector General.
This case underscores the government's focus on combating healthcare fraud using tools like the False Claims Act. Tips about potential fraud can be reported to Health and Human Services at 800-HHS-TIPS (800-447-8477).
Assistant U.S. Attorney Nina Herring for the Southern District of Alabama and Trial Attorney Rory Skaggs handled this matter.
It should be noted that these are allegations only; there has been no determination of liability.
