Hospice owner sentenced to 6 years in $20 million SNF kickback scheme

Source: Emily Mongan, McKnight’s, March 9, 2017

The owner of an Illinois hospice company was sentenced to six and a half years in federal prison on Tuesday for his role in a Medicare fraud scheme that paid kickbacks to nursing homes. Seth Gillman owned Passages Hospice LLC, which grew to be the largest hospice provider in the state before Gillman was charged in 2014 with inappropriately designating nursing home residents as hospice patients and overbilling for hospice services. Gillman also was accused of paying kickbacks to nursing homes that participated in the scheme, as well as providing residents of his family’s nursing home chain, Asta Healthcare, with fraudulent hospice services through Passages. Those residents often received services for years, far beyond the six-month cap in place for federal funding for hospice services, authorities said. The family of some former Passages patients told the Chicago Tribune that employees told them their loved ones were terminally ill, when they actually weren’t, in order to move them to hospice care or the more lucrative general inpatient care, or GIP. …