Bloom Care LLC and its owners have agreed to pay $3 million to settle allegations of violating the False Claims Act. The allegations involved submitting false claims to federal healthcare programs for unnecessary testing and inflating service levels during the COVID-19 pandemic. Bloom operated urgent care centers in Idaho and New Mexico.
The U.S. government alleged that Bloom used the pandemic as a pretext for billing unnecessary streptococcus and influenza tests for patients without symptoms. Furthermore, it was claimed that Bloom submitted high-level evaluation claims for COVID-19 patients, knowing these should have been billed at lower rates. This allegedly included exaggerating time spent with patients or the complexity of evaluations.
“The Department of Justice is committed to identifying waste, fraud, and abuse in federal programs,” stated Acting U.S. Attorney Justin Whatcott. He commended the agencies involved in investigating the case.
Acting Special Agent Jeffrey McIntosh from HHS-OIG emphasized that healthcare providers must adhere to laws when submitting claims and not order unnecessary services for profit. “This settlement shows HHS-OIG’s enduring commitment to protecting the integrity of federal health care programs,” he said.
Dimitriana Nikolov from the Department of Veterans Affairs OIG noted that companies serving veterans must maintain high standards, warning against submitting claims for unnecessary services.
The investigation was conducted by multiple agencies including the U.S. Attorney’s Office for Idaho, HHS-OIG, and VA OIG, with assistance from Idaho’s Department of Health and Welfare. Assistant United States Attorney Elliot Wertheim managed this case.
It is important to note that these are allegations only; there has been no admission or determination of liability against Bloom Care LLC.
In May 2021, a COVID-19 Fraud Enforcement Task Force was established by the Attorney General to combat pandemic-related fraud through enhanced coordination across government agencies.
For information on reporting attempted COVID-19 fraud, individuals can contact the National Center for Disaster Fraud Hotline or use their online complaint form.
