Prosecutors alleged that Bayada paid a kickback to a retirement home operator when it purchased two of its home health agencies in Arizona. Prosecutors said the purchase was made to induce referrals of Medicare beneficiaries to Bayada.
As a result of the alleged kickback transaction, Bayada submitted false claims to Medicare for services provided to beneficiaries who were referred to Bayada, the U.S. Justice Department said.
The settlement resolves claims brought by whistleblower David Freedman, who was director of strategic growth for Bayada between 2009 and 2016. Mr. Freedman will receive more than $3 million.
