June 15, 2009
The U.S. Attorney’s Office for the Middle District of Tennessee has filed a False Claims Act suit against Diversified Health Management, Incorporated (Diversified), James W. Carell (the company’s president), and the James W. Carell Family Trust.
Diversified acted as the management company for three home health agencies. Medicare rules required disclosure of related parties, but Diversied and the home health agencies fraudulently concealed the fact that Carell controlled all four entities.
The government is seeking three times the $6.3 million it says it would not have paid had it known of the relationship.