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Maxim Healthcare to pay $14 million in Massachusetts settlement after finding error

December 06, 2017

Maxim Healthcare Services Inc., the ninth-largest US healthcare staffing firm, agreed to pay more than $14 million to settle allegations that it improperly submitted and received overpayments for services from the state’s Medicaid program, known as MassHealth, Attorney General Maura Healey announced Tuesday.

The matter was reported to the Attorney General’s Medicaid fraud division in January 2017 after Maxim self-reported the matter to MassHealth. The disclosure indicated that claims were improperly submitted to and paid by MassHealth for home health aide services provided through Maxim when nursing or skilled therapy services were not necessary.

“Maxim is deeply committed to maintaining a strong culture of compliance and integrity and we take our obligations to MassHealth and the other programs we serve very seriously,” Maxim CEO Bill Butz said in a statement. “While we regret this error, we are pleased we were able to identify it on our own and take the necessary steps to resolve it quickly.”

The Attorney General’s investigation found that between March 2010 and October 2016, Maxim submitted and received payment for nearly 95,000 claims for services that were not covered per MassHealth regulations.

The settlement requires Maxim to pay $14,264,803 to MassHealth and includes compliance conditions going forward for three years. Maxim will also provide training to all employees involved in the MassHealth billing process regarding applicable statutes.

This story has been clarified from a previous version.