Northwest Georgia hospice company settles kickback allegations with $1.4 million payment

NORTHWEST GEORGIA — The U.S. Department of Justice announced Thursday that a northwest Georgia hospice company had agreed to settle False Claims Act allegations and pay $1.4 million.

The Justice Department said the owners and managers of Tapestry Hospice of Northwest Georgia agreed to pay the settlement to resolve allegations that they’d participated in a kickback arrangement with medical directors in order to have patients referred to their company for hospice care.

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According to USDOJ, David Lovell, MD, Stephanie Harbour, Ben Harbour, and Andrew Nall were the staff who allegedly violated the False Claims Act.

USDOJ said the case started when a former Tapestry Hospice employee filed a whistleblower complaint accusing the company of paying kickbacks to medical directors in exchange for referrals. “These alleged kickbacks included monthly stipends and a signing bonus paid to the medical directors,” Justice officials said.

The alleged kickbacks were said to include monthly stipends and signing bonuses, according to USDOJ.

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When more patients were referred to Tapestry Hospice, compensation to medical directors increased, according to the whistleblower, while the amount decreased when “the medical director failed to make referrals.”

“By entering into kickback arrangements, health care providers can cause doctors to make medical decisions that are motivated by financial gain, rather than the patient’s best interest,” U.S. Attorney Ryan K. Buchanan said. “Our office is committed to ensuring the accountability of health care providers who put their own financial needs ahead of their patients.”

As part of the settlement, the whistleblower received $252,000, having sued the company for violating the whistleblower provisions of the False Claims Act, USDOJ said in a statement.

As a civil settlement, the claims resolved are allegations only, USDOJ said, and there has not been a determination of liability.

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