Saad Enterprises Agrees to $3 Million Settlement Over False Claims Act Violation

Saad Enterprises Inc., operating as Saad Healthcare, has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by knowingly submitting fraudulent claims for hospice care in Alabama. The claims in question were for patients who were not terminally ill and thus did not meet the eligibility criteria for Medicare's hospice benefit.

Hospice care is a specialized form of end-of-life support, aimed at providing comfort to patients with terminal illnesses. For Medicare patients to be eligible for hospice care, they must have a life expectancy of six months or less due to their terminal condition. Patients in hospice forgo traditional treatments meant to cure their illness and instead receive care focused on alleviating symptoms and stress.

"Respectful and appropriate end-of-life care is the crux of the hospice benefit under Medicare,” said Principal Deputy Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department will hold accountable those who exploit this benefit for their own gain.”

The settlement resolves claims that, between 2013 and 2020, Saad submitted or facilitated fraudulent claims for 21 patients who did not qualify for the Medicare hospice benefit. These patients were not terminally ill as defined by the law and regulations governing Medicare hospice care. Saad was fully aware that these patients did not meet the eligibility requirements for hospice benefits.

Acting U.S. Attorney Keith A. Jones for the Southern District of Alabama added, "Caring for terminally ill people is a responsibility the United States and the Medicare program take seriously. Patients and taxpayers deserve not to be cheated, and the Department of Justice will continue to protect them."

The settlement stems from a whistleblower lawsuit filed under the False Claims Act, allowing private citizens to bring claims on behalf of the United States and share in any recovery. The lawsuit, United States ex rel. Wolff & Sims v. Saad Enterprises, Inc., was filed by former Saad employees Melissa Wolff and Whitney Sims. As part of the settlement, the two whistleblowers will receive $540,000.

This case highlights the ongoing efforts by the U.S. Department of Justice to protect Medicare beneficiaries and prevent fraud that exploits vital healthcare programs meant to support vulnerable individuals.

Saad Healthcare, founded in 1967 by John and Dorothy Saad, began with a simple mission: to provide quality healthcare to the people of Mobile, Alabama. Over the years, Saad Healthcare grew from its humble beginnings to become one of the largest healthcare providers on the Gulf Coast, employing a significant number of professionals dedicated to delivering compassionate care.

The company offers a range of healthcare services, including hospice care, a specialized form of end-of-life support that focuses on symptom management and comfort for patients with terminal illnesses. Saad Healthcare's commitment to high-quality patient care has established it as a trusted name in the region.

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