October 14, 2003
Sean Caine, 410-576-6357
HEALTHCARE COMPANY SETTLES WITH ATTORNEY GENERAL'S OFFICE OVER MEDICAID
General J. Joseph Curran, Jr. announced today that Tender Loving
Care Health Care Services, Inc. has agreed to pay approximately
$1.3 million in connection with allegations that the former manager
of its Maryland franchise operations knowingly caused Medicaid to
overpay the company for its services. TLC provides home nursing
and other healthcare services throughout the Baltimore-Washington
Metropolitan area, as well as in 20 other states and the District
of Columbia. Its headquarters are in Lake Success, New York.
which has offices at 1501 South Edgewood Street in Baltimore County
and at 8121 Georgia Avenue in Prince George's County, agreed to
refund overpayments of $556,769 and to pay additional damages and
costs of $741,769 in order to settle allegations that it defrauded
the state's Medicaid program.
investigation by the Attorney General's Medicaid Fraud Control Unit
revealed that for the fiscal years beginning March 1993 and ending
February 1997, the former manager of TLC's Maryland franchise repeatedly
submitted payroll reports to TLC's headquarters that inflated the
number of employees who were performing healthcare-related duties.
TLC then submitted documentation based on the manager's information
to Medicaid. As a result, Medicaid significantly overpaid TLC for
its personnel costs.
investigation revealed that many of the supposed TLC employees fraudulently
added to the payroll reports were actually employed by other, unrelated
companies owned by the former manager. In other cases, the manager
added the names of employees of the District of Columbia TLC franchise,
which he also previously managed, to the Maryland franchise's reports.
the settlement agreement, TLC will refund to Medicaid all overpayments
resulting from the fraudulent actions. TLC will also pay the state
an additional amount equal to the cost of the fraud, as well as
compensation for the costs of the investigation. TLC asserts that
it had no knowledge that the information provided to it by the former
manager of its Maryland franchise was incorrect in any way. The
settlement agreement itself is not an admission or evidence of wrongdoing