Government Reaches $2.5 Million Settlement in Healthcare Fraud Matter

Press Release

US Attorney's Office - San Juan

SAN JUAN, Puerto Rico – On May 18, 2016, the U.S. Government entered
into an out of court settlement agreement with Hospicio La Paz, Inc., in co-
nnection with a False Claims Act investigation carried out by the U.S. Dep-
artment of Health and Human Services, Office of Inspector General (HHS-
OIG) and the U.S. Attorney’s Office, District of Puerto Rico. The investiga-
tion uncovered approximately $1,504,509.00 in questionable billings submi-
tted for payment by Hospicio La Paz, Inc. to Medicare Program, Part A, from
October 2011, through September 2012.

Under the False Claims Act, Title 31, United States Code, Sections 3729, et
seq., the United States can recover up to three times the amount of loss and
civil monetary penalties ranging from $5,500.00 to $11,000.00 per false cl-
aim. As part of the settlement negotiations, Hospicio La Paz, Inc. paid the
United States Government the sum of $2,500,000.00, including excess da-
mages and penalties. Furthermore, Hospicio La Paz will enter into a comp-
liance agreement with HHS-OIG.

The United States Attorney’s Office will continue to investigate healthcare
fraud matters, and will aggressively pursue civil and criminal actions against
those who attempt to defraud the United States.  The matter was prosecuted
by Assistant U.S. Attorney Rafael J. López Rivera, Civil Health Care Fraud
Coordinator, at the U.S. Attorney’s Office.