Mich. AG Charges Metro Detroit Home Health Care Corp. with Medicaid Fraud

July 19, 2005

Michigan Attorney General Mike Cox has charged a Metro Detroit-based corporation that provides home health and hourly nursing care with filing false Medicaid claims totaling $895,000. Cox also filed a civil suit against the corporation seeking restitution and penalties that could exceed $3.5 million.

Friends Who Care Inc. provides physician-ordered services to severely handicapped patients. An investigation by Cox’s Health Care Fraud Division reportedly revealed that the corporation billed Medicaid for services that were not actually provided. A Medical Services Administration audit of Medicaid claims determined that Friends Who Care had billed more than $750,000 in services, in addition to approximately $145,000 in mileage charges, and that those claims were unsubstantiated in patient files.

Judge David Jordon arraigned the corporation July 15 on 35 counts of Medicaid False Claims in East Lansing’s 54-B District Court, a four-year felony which also carries a maximum $50,000 fine. Jordon set a $5,000 personal recognizance bond and Oct. 21 for the preliminary examination.

On July 14, Cox also filed a civil suit against the corporation in Ingham County’s 30th Circuit Court seeking restitution in the amount of $895,000, plus treble damages for a total of $3,580,000. The corporation must file its answer to the complaint by Aug. 5 and the case has been assigned to Judge Joyce Draganchuk.

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