Matt Wolfe was quoted in Home Health Care News on how Medicare's six-year lookback rule for overpayments creates risks with acquisitions.
“There’s a scenario where Agency A buys Agency B, and Agency B’s claims are audited from four years ago with Medicare demanding $2 million back,” Matt said. “Because Agency A bought that other business, they could say, ‘Hey look, Medicare is saying we owe that money back. If that’s right, you need to be on the hook for paying.’ But it doesn’t work if you’ve got a defunct agency you’re dealing with.”
He also explained that even if Medicare changes that rule, home health providers will still face other types of lookbacks.
“If we’re talking about a potential whistleblower or False Claims Act case, the lookback period can actually be greater than six years,” Matt said. “Obviously, the longer the lookback period is, the greater exposure there is for a potential buyer.”
You can read the full article here. Home Health Care News is a leading publication focused on the in-home care industry.