Diakon Lutheran Social Ministries to Pay $10.56 Million for Improper Hospice Reimbursement

Diakon Lutheran Social Ministries, a charitable organization operating as Diakon Hospice St. John (Diakon), agreed to pay the U.S. $10.56 million to settle allegations that it submitted claims for Medicare reimbursement for ineligible hospice patients from October 1, 2004 to October 1, 2010.   Diakon, which is part of the Evangelical Lutheran Church of America, offers hospice services throughout Pennsylvania, Maryland, and Delaware.  Diakon voluntarily disclosed to the U.S. Government that it received Medicare reimbursement for hospice patients who were ineligible for  such reimbursement under Medicare regulations.  By voluntarily disclosing the improper reimbursement, Diakon avoided a potential False Claims Act suit which would provide treble damages and civil penalties of up to $11,000 per claim.

For more information see: http://www.justice.gov/usao/pam/news/2011/Diakon_12_01_2011.htm