Empire State Home Care, a home care agency in Brooklyn, will pay $6 million to the state to settle claims that it didn't properly report home health aid hours, said New York Attorney General Eric Schneiderman | Shutterstock

ALBANY, N.Y. (Legal Newsline) - Empire State Home Care, a home care agency in Brooklyn, will pay $6 million to the state to settle claims that it didn't properly report home health aid hours, said New York Attorney General Eric Schneiderman on Monday.

The lawsuit also claimed the agency didn't accurately track cost reports for administrative and general expenses between 2002 and 2005. The cost reports were used to reimburse Empire State between 2004 and 2007. About $3 million was given in reimbursements, which Schneiderman said the agency was not entitled to.

“Many New Yorkers count on Medicaid for important health services, and I will continue to safeguard Medicaid funds to ensure they are being used for their intended purpose,” Schneiderman said. “When Medicaid reimbursements are inflated by providers, it causes funds to be diverted from those most in need.”

Salaries and benefits for administrative personnel were allegedly reported under direct care costs centers instead of administrative and general cost centers. That resulted in the agency receiving inflated Medicaid reimbursements during the audit period, Schneiderman said.

The $6 million will go to the state, and will include penalties that are more than the $3 million that was improperly reimbursed, Schneiderman said.

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