Philadelphia hospice owner charged with Medicare fraud

October 13, 2011|By Bob Fernandez, Inquirer Staff Writer

The operator of a Philadelphia hospice-care business was indicted Wednesday for allegedly defrauding Medicare of $14.3 million.

Matthew Kolodesh, of Churchville, Bucks County, operated Home Care Hospice Inc. in the 2800 block of Grant Avenue and was charged with submitting claims to Medicare for patients who weren't eligible for hospice or who didn't receive care, U.S. Attorney Zane David Memeger said.

Among the ineligible patients were people who weren't dying, according to the grand jury indictment.

Kolodesh also allegedly diverted more than $9 million from Home Care Hospice's operating account for personal use that included paying college tuition for his son and making extensive renovations to his home. He is charged with 21 counts of health-care fraud, 11 counts of money-laundering, two counts of mail fraud, and conspiracy to commit health-care fraud.

Story continues below.

Federal Judge Timothy R. Rice in Philadelphia set cash bail at $250,000 after Kolodesh was arrested Wednesday morning.

Mark B. Sheppard, a partner with Montgomery, McCracken, Walker & Rhoads L.L.P., is representing Kolodesh. Sheppard was traveling and not available for comment.

Kolodesh, 49, could face a maximum sentence of 370 years, and the government said it would seek restitution of $14.3 million. The FBI and the Department of Health and Human Services Office of Inspector General investigated the case. It was assigned to Suzanne B. Ercole, an assistant U.S. attorney.


Contact staff writer Bob Fernandez

at 215-854-5897 or bob.fernandez@phillynews.com.

|
|
|
|
|