CareAll Management and its affiliated entities will pay $25 million, plus interest, to the United States and the state of Tennessee to resolve allegations that CareAll violated the False Claims Act by submitting false and upcoded home healthcare billings to the Medicare and Medicaid programs.

CareAll is based in Nashville, Tennessee, and is one of Tennessee’s largest home health providers.

This settlement resolves allegations that between 2006 and 2013, CareAll overstated the severity of patients’ conditions to increase billings and billed for services that were not medically necessary and rendered to patients who were not homebound.

This is CareAll’s second settlement of alleged False Claims Act violations within the last two years.

In 2012, CareAll paid nearly $9.38 million for allegedly submitting false cost reports to Medicare.

As part of the settlement, the companies agreed to be bound by the terms of an enhanced and extended corporate integrity agreement with the Department of Health and Human Services-Office of Inspector General (HHS-OIG) in an effort to avoid future fraud.

Under the False Claims Act, private citizens, known as relators, can bring suit on behalf of the United States and share in any recovery.

The relator in this case, Toney Gonzales, will receive more than $3.9 million as his share of the recovery.