On June 15th, JANICE DAVIS, age 62, of West Monroe, was sentenced in United States District Court for the Western District of Lousianna for healthcare fraud. DAVIS was sentences to spend 15 months in federal prison and a term of three years of supervised release following confinement.
DAVIS was charged in July 2008 in a one-count indictment and later plead guilty to concealment or falsification of records in a federal investigation. After being served with a subpoena for documents from the Department of Health and Human Services (HSS), Office of Inspector General (OIG), on July 23, 2003, the defendant personally destroyed, concealed, covered up, and falsified records and documents, including physician service logs, with the intent to impede, obstruct, and influence an investigation into Medicare fraud by Aging Care Home Health Care ACHH. The investigation revealed that DAVIS produced documents that she created after receipt of the OIG subpoena and that many of ACHH’s doctors did not perform the services indicated in the records.
JANICE DAVIS has owned and operated ACHH, a Monroe-based company, since 1991 until its closure in 2005. ACHH provided nursing and therapy services to patients in their homes. Clinic-based doctors monitored the patients’ home health services by updating treatment plans and prescribing medications. Normally, a physician would bill Care Plan Oversight services directly to Medicare. Payment is made by Medicare directly to the physician for services rendered to home health and hospice patients.
The subpoena issued by HSS-OIG to Aging Care Home Health was a result of an October 2002 False Claims Act suit which alleged that ACHH tracked physicians “Care Plan Oversight” services and billed Medicare as a means to induce patient referrals from physicians. In November of 2004, the United States intervened in that suit alleging that Janice Davis, her husband Otis Davis and her company violated federal Stark and Anti-Kickback statutes by creating a sham physician advisory board and paying its members not for legitimate duties actually performed, but instead for Medicare referrals, which is illegal. The False Claims Act lawsuit ended in 2008 when U.S. District Judge Robert James granted several motions for summary judgment against Janice Davis, Otis Davis and Aging Care and awarded almost $5,000,000 in damages and penalties to the United States. In that suit, Judge James also found that Janice Davis had destroyed company records which were responsive to the federal subpoena and attempted to replace them with false records she fabricated in an attempt to mislead federal regulators and law enforcement.

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