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Zamansky & Associates LLC Investigates Chemed Corporation For Possible Securities Law Violations And Breaches Of Fiduciary Duties To Shareholders
Date:5/4/2013

New York, New York (PRWEB) May 04, 2013

Zamansky & Associates LLC is investigating possible securities law violations or breaches of fiduciary duties owed by shareholders by Chemed Corporation ("Chemed") following the U.S. Department of Justice's ("DOJ") announcement that it filed a lawsuit against Chemed's Vitas Hospice units ("Vita") alleging that it knowingly overbilled the Government's Medicare program. The lawsuit is United States v. Vitas Hospice Services LLC, et al., United States District Court, Western District of Missouri, No. 13-CV-449.

The complaint by the DOJ alleges that Chemed and Vitas (collective, the "companies") knowingly submitted, or caused the submission of, false claims to Medicare for crisis care services that were not necessary, not actually provided, or not performed in accordance with Medicare requirements. According to the DOJ’s complaint, the companies set goals for the number of crisis care days that were to be billed to Medicare. The complaint further alleges that the companies allegedly used aggressive marketing tactics and pressured staff to increase the numbers of crisis care claims submitted to Medicare, without regard to whether the services were appropriate or were actually being provided.

In addition, the DOJ’s complaint alleges that the companies knowingly submitted, or caused the submission of, false claims for hospice care for patients who were not terminally ill. The complaint also alleges that the companies paid bonuses to staff based on the number of patients enrolled in the program and based on patients who were admitted for longer lengths of stay, and took adverse employment actions against marketing representatives who did not meet monthly hospice admissions goals. As a result of the conduct alleged in th
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