Medical Services of America, Inc. and Traditional Home Care, Inc., operating as Community Home Health Services, have agreed to pay $702,541.20 to resolve allegations that they violated the Physician Self-Referral Law, also known as the Stark Law. The case centers on bonus payments made to an employee based on patient referrals from the employee’s spouse, who is a physician.
“The Stark Law exists to ensure that medical decisions are driven by patient need — not financial relationships,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “When providers violate that principle, they undermine trust in the Medicare system and unfairly profit at the expense of taxpayers. This resolution reinforces our commitment to protecting the integrity of federal healthcare programs.”
The Stark Law restricts entities from billing Medicare for certain health services referred by physicians with whom they have a financial relationship unless an exception applies. In this instance, Community Home Health Services employed the spouse of a referring physician and allegedly failed to meet any legal exceptions.
The conduct in question occurred between February 2017 and February 2025 and involved Medicare beneficiaries referred by a physician to Community Home Health Services for designated health services, which were then billed to Medicare.
Out of the total settlement amount, $379,752 will be paid as restitution.
The investigation began after whistleblower Javier Figueroa filed a lawsuit under the False Claims Act’s qui tam provisions. These provisions allow private individuals to file lawsuits on behalf of the government and receive part of any recovered funds. Figueroa will receive approximately $126,457 from this settlement.
U.S. Attorney Reding Quiñones announced the settlement along with Acting Special Agent in Charge Jesus Barranco of HHS-OIG Miami Regional Office. The investigation was conducted by HHS-OIG Miami.
Assistant U.S. Attorney H. Ron Davidson and former Assistant U.S. Attorney Christopher Cheek managed litigation for this matter.
Further information about related court documents can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or through http://pacer.flsd.uscourts.gov under case number 23-cv-81328.
