Medicare Fraud At Haven Healthcare?

There are allegations of suspected Medicare and Medicaid fraud at Haven Healthcare, Middletown. The nursing chain has 25 nursing homes and 15 of them are in Connecticut. The chain is spread all over New England. Federal investigators including FBI agents raided the healthcare company’s premises and hauled away boxes of documents after issuing search warrants. These box loads were collected from many of their facilities all over and brought to the company’s headquarters at Long Hill Road in four U-haul trucks.

Agents of the Healthcare Fraud Task Force issued the search warrants and this task force has FBI investigators as well as people from the IRS and the Health and Human Services Department, which enforces the regulations of both Medicare and Medicaid.

Haven Healthcare had gone into a spiraling spin of debt and had filed last week for bankruptcy protection, along with 41 allied entities. It owes Omnicare Value Health Care, the company which supplies its medicines, a whopping sum of $14 million. It has also, in the last three years been fined forty five times for patient care that has been deficient.

Legal records show that the company had collected Medicare funds meant for pharmaceutical supplies and services totaling an excess of $20 million but did not pay their suppliers. The reason? According to the company, it was used to cover other shortfalls. The question is, how did they account to the federal government? That is what is terribly unclear. The alleged fraud seems to have been going on since 2004.