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September 22, 2011

Problems for Medicaid Company

Government personnel suspected Maxim HealthCare Services conducted a “nationwide scheme” to cheat people out of $61 million+ in 2003-2009.  The company offers home health services to people with physical/mental challenges.  The wrongdoing was first noticed by Richard West when he received a bill for payment of services he never obtained.
Maxim will now pay $150 million for the suspected scheme.  The deal was reached between the company, the federal government, and 40 states.  Maxim isn’t shy about admitting its wrongdoing.

“We take full responsibility for these events… and we are pleased to reach a settlement that will allow us to move forward with the important work of caring for our patients and clients who depend on us each and every day,” Maxim CEO Brad Bennett said in a statement.

Besides paying the $150 million for fraud, Maxim will allow an independent supervisor to watch future business transactions.  The money will be distributed among the federal government and states.  Nine people, eight ex-employees, have pleaded guilty to felony charges in connection with the fraud statements.

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