Kindred Corporate Integrity Agreement

Kindred said on Tuesday that it was pleased to reach an agreement with the OIG on the problems encountered prior to the acquisition of these facilities. Kindred Health Care Inc. will pay more than $3 million for violating the terms of its Corporate Integrity Agreement (CIA), the largest fine imposed by the federal government on a health care provider for CIA violations. Kindred has agreed to a series of corrective measures, including external control of billing practices under the CIA for five years. In exchange for the agreement, the OIG agreed not to exclude Kindred from participation in Medicare, Medicaid or other federal health programs. The largest post-acute health care provider, Kindred Healthcare, Inc. (NYSE: KND), based in Louisville, paid a fine of more than $3 million after complying with a Business Integrity Agreement (CIA) it signed with the federal government. Instead of excluding a health care provider from participating in public or public health programs because of an alleged violation of the False Claims Act, OIG CIAS inserts in its transaction agreements with Medicare providers who were misled during Medicare billing. A CIA is usually a five-year contract that requires the Medicare provider to take a series of reform measures and submit to regular reviews of policies and practices. The regulator said the internal audits required in the agreement revealed that Kindred`s subsidiary had failed to implement guidelines and procedures under the agreement in 2013, 2014 and 2015, resulting in significant errors in public health claims. The failures have also led Medicare to pay too much for the services provided. The current company integrity agreement follows a March 2012 agreement with Gentiva and its subsidiary Odyssey HealthCare for Medicare billing for certain palliative care services. The false allegations were filed from 2006 to 2009.

The transaction agreement, which deals with allegations that rehabilitation care for patients in skilled care facilities was not provided or billed in accordance with Medicare requirements, involves a payment to the government of $125 million, plus accrued interest, effective August 31, 2015, to the tune of 1.875 per cent per annum. The company expects a payment in the first quarter of 2016. The transaction agreement terminates the DOJ`s audit of RehabCare`s business practices, which focuses on the conduct that occurred prior to the company`s acquisition of RehabCare in 2011. Kindred informed IL by email that the company integrity agreement had been reached prior to the company`s acquisition of Gentiva in February 2015. The Office of Inspector General of the U.S. Department of Health and Human Services stated that it imposed the sanction for failing to correct incorrect billing practices in the fourth year of a five-year enterprise integrity agreement it had entered into to resolve fraud charges. According to the OIG, inspectors discovered persistent CIA violations during a series of surprising visits to the site in 2013, 2014 and 2015. Kindred was sentenced to the historic sentence for "failure to comply with incorrect billing practices in the fourth year of the five-year contract." In particular, Kindred`s auditors found that Kindred and Gentiva had not implemented the corrective measures mentioned in the agreement and that inadequate claims submission procedures had led to significant errors that led to Medicare overpayments. The OIG has entered into such agreements with Medicare providers who have resolved allegations of violations of the False Claims Act.