Georgia Hospice Provider Pays $9.2 Million to Settle Kickback Allegations
Mahlega Abdsharafat, also known as “Mallie Sharafat,” and the Creative Hospice Care, Inc. entities have paid $9.2 million to settle allegations of engaging in illegal kickback arrangements with medical directors for patient referrals. This settlement resolves claims that Abdsharafat and Creative Hospice violated the Anti-Kickback Statute and the False Claims Act.
“A physician’s health care decision should be based solely on the needs of the patient rather than the physician’s financial interests,” said U.S. Attorney Theodore S. Hertzberg. “Health care providers who place unlawful personal gain above their duty of care to patients must be held accountable for their dishonesty.”
The government’s investigation was initiated by a whistleblower complaint filed by a former Creative Hospice employee. This individual, responsible for marketing Creative Hospice’s services, alleged that the company paid kickbacks, including monthly stipends and signing bonuses, to medical directors to induce them to refer hospice patients. The compensation was allegedly tied to the volume of patient referrals. Two additional whistleblower complaints with similar allegations were subsequently filed.
These alleged arrangements are in violation of the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), and are accused of leading to the submission of false claims under the False Claims Act (FCA), 31 U.S.C. § 3729, et seq.
“Patients should not have to wonder if their doctors’ medical decisions are being driven by unlawful inducements,” said FBI Atlanta Special Agent in Charge Paul Brown. “We will continue to hold accountable individuals, as well as companies, who participate in kickback schemes that threaten the integrity of our healthcare system.”
Under the FCA’s qui tam or whistleblower provisions, individuals can file lawsuits on behalf of the United States for false claims and share in any government recovery. The relators (whistleblowers) who filed the three lawsuits against the Creative Hospice entities will collectively receive over $1.5 million from this settlement.
Kelly Blackmon, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG), emphasized the commitment to integrity: “Health care providers that participate in kickback schemes undermine the integrity of federal health care programs. This settlement demonstrates HHS-OIG’s unwavering commitment with our law enforcement partners to hold those accountable who put profit and personal gain ahead of the legitimate medical services.”
Georgia Attorney General Chris Carr added, “Decisions regarding end-of-life care are incredibly difficult and personal, and families must be able to trust the intentions of their chosen providers. Those who instead take advantage of the system for their own personal gain will be held accountable.”
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and the Medicaid Fraud Division of the Georgia Attorney General’s Office. The investigation and resolution were handled by Assistant U.S. Attorney Neeli Ben-David and Georgia Senior Assistant Attorney General Sara Vann, with former Assistant U.S. Attorney Akash Desai also contributing.
