The US Attorney’s Office for the Eastern District of Louisiana sentenced a hospice owner to 240 months in prison and $42 million in penalties for charges related to Medicare fraud.
Shiva Akula, the owner of Canon Healthcare, was convicted in November on 23 counts related to overbilling for hospice patients for expensive general inpatient services and manipulation of Medicare billing codes, according to a recent announcement from the US Attorney’s Office. Akula reportedly had billed Medicare approximately $84 million in fraudulent claims, for which he received roughly half in reimbursement, between January 2013 and December 2019. The district judge ordered Akula to repay the $42 million that he fraudulently received from Medicare.
Akula also was ordered to pay $2,300 in special assessment fees related to the “extensive healthcare fraud scheme,” according to the US Attorney’s Office. The sentencing came after a “long, complicated and challenging prosecution,” US Attorney Duane Evans said. The investigation process involved the FBI, the Department of Health and Human Services Office of Inspector General and the Louisiana Department of Justice’s Medicaid Fraud Control Unit.
“Shiva Akula showed no regard for quality end-of-life hospice care,” HHS-OIG Special Agent Jason Meadows said in a statement. “Instead, Akula’s motivation centered around multiple fraud schemes to maximize profit and steal from American taxpayers.”
The US Attorney’s Office announcement came as many hospices nationwide face increasing regulatory and legislative scrutiny. Lawmakers recently have urged the Centers for Medicare & Medicaid Services to take stronger measures to combat fraud in hospice. In July, CMS imposed a period of enhanced oversight for hospices in Arizona, California, Nevada and Texas to combat mounting reports of fraud. Experts indicated in February that CMS’ “crackdown” on hospice fraud was in full effect this year.
Canon Healthcare operates in New Orleans, Baton Rouge and Covington, LA, and also serves patients in Gulfport, MS.
