Home Health Fraud: CMS Urged to Stop Bad Actors

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Home Health Advocates Urge CMS to Balance Fraud Enforcement with Provider Support

Washington D.C. – Leading home health and hospice organizations are calling on the Centers for Medicare & Medicaid Services (CMS) to aggressively pursue fraudulent actors within the industry while simultaneously safeguarding legitimate providers from undue burden. The appeal comes as CMS, under the leadership of Administrator Dr. Mehmet Oz, intensifies its scrutiny of home-based care services.

A joint letter, released Wednesday, from the National Alliance for Care at Home (the Alliance), LeadingAge, LeadingAge California, and the California Association for Health Services at Home (CAHSAH), acknowledges the necessity of addressing the growing concern of fraud, waste, and abuse in the home health and hospice sectors. However, the organizations emphasize that the issue stems from a relatively small number of bad actors and should not tarnish the reputation of the vast majority of providers who deliver essential care with integrity.

The Rising Tide of Home Health Fraud and CMS’s Response

Recent enforcement actions and increased media attention have rightly focused on instances of fraudulent billing and substandard care within the home health and hospice landscape. This scrutiny follows a period of significant growth in the sector, fueled by the increasing preference for receiving care in the comfort of one’s own home. However, this expansion has also created opportunities for unscrupulous individuals and organizations to exploit the system.

The organizations collectively represent over 1,500 hospice and home health providers operating across more than 10,000 locations nationwide. They argue that a broad-brush approach to enforcement could inadvertently harm compliant providers, potentially limiting access to care for vulnerable patients.

Targeted Oversight and the Role of Site Visits

The letter specifically advocates for continued and expanded site visits to high-risk areas, echoing recent efforts by CMS leaders, including Dr. Oz, who have personally visited fraud hotspots in Nevada and California. These on-the-ground investigations are seen as a crucial deterrent to fraudulent activity.

Furthermore, the organizations express support for the use of tools like the Provisional Period of Enhanced Oversight (PPEO) and Enhanced Prepayment Reviews (EPR) to proactively identify and prevent improper payments. However, they caution that these tools must be applied judiciously, focusing on genuine risks rather than creating unnecessary obstacles for legitimate providers. “The goal of these tools must be clearly and consistently framed around catching fraud, not reducing the number of providers,” the letter states.

The organizations also suggest a more refined approach to applying these oversight mechanisms, particularly in cases involving changes of ownership. They propose that enhanced scrutiny should be reserved for new providers and those exhibiting suspicious billing patterns, referral relationships, or ownership structures. This risk-based approach, they believe, would maximize the effectiveness of CMS’s resources while minimizing the burden on compliant providers.

Strengthening Program Integrity Through Collaboration

Beyond targeted oversight, the letter proposes strengthening collaboration between CMS and state licensing agencies. A more robust review process at the state level, prior to Medicare enrollment, could help prevent fraudulent providers from entering the system in the first place. The organizations also recommend a thorough evaluation of enrollment applications, potentially requiring additional documentation to verify the legitimacy of applicants.

Currently, the organizations are actively developing further recommendations in response to the Administration’s Request for Information (RFI) related to Comprehensive Regulations To Uncover Suspicious Healthcare (CRUSH). This ongoing effort demonstrates their commitment to proactively addressing the challenges of fraud and abuse.

These calls for a balanced approach align with recent statements from Jennifer Sheets, CEO of the National Alliance for Care at Home, who has consistently emphasized the importance of protecting both program integrity and access to care. Sheets stated, “Heightened oversight and added administrative complexity may cause physicians and practitioners to think twice about making referrals, and families…could feel increased hesitation if messaging around bad actors overshadows the broader reality of high-quality care.”

Katie Smith Sloan, president and CEO of LeadingAge, echoed this sentiment, stating, “Gross overgeneralizations…unnecessarily undermine trust and do a disservice to the vast majority of providers who deliver compassionate, compliant care each day.”

Did You Know? The home health care industry is projected to experience significant growth in the coming years, driven by the aging population and the increasing prevalence of chronic conditions.

What steps can CMS take to ensure that increased oversight doesn’t inadvertently hinder access to vital home-based care services? And how can the industry better collaborate to identify and prevent fraudulent activity before it impacts patients?

Visit the CMS website to learn more about their efforts to combat fraud, waste, and abuse.

Explore the National Alliance for Care at Home’s resources on program integrity.

Frequently Asked Questions About Home Health Fraud

  1. What is CMS doing to address home health fraud? CMS is increasing oversight through site visits, utilizing tools like PPEO and EPR, and collaborating with state licensing agencies.
  2. How can compliant home health providers avoid being unfairly targeted by CMS enforcement? By maintaining meticulous records, adhering to all regulations, and proactively addressing any potential vulnerabilities.
  3. What is the CRUSH initiative? CRUSH is a comprehensive regulatory effort aimed at uncovering suspicious healthcare practices.
  4. Why is it important to balance fraud enforcement with provider support? Overly burdensome regulations can discourage legitimate providers, potentially limiting access to care for patients.
  5. What role do state licensing agencies play in preventing home health fraud? State agencies can provide an initial layer of review and scrutiny before providers are enrolled in Medicare.
  6. What are PPEO and EPR? PPEO stands for Provisional Period of Enhanced Oversight, and EPR stands for Enhanced Prepayment Reviews. These are tools used by CMS to identify and address fraudulent billing.
  7. How can patients protect themselves from fraudulent home health providers? Patients should verify the provider’s credentials and report any concerns to CMS.

Share this article with your network to raise awareness about the importance of program integrity in home health care.

Disclaimer: This article provides general information and should not be considered legal or medical advice.


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