Estate of Debbie Helmly v. Bethany Hospice and Palliative Care of Coastal Georgia, LLC

CourtCourt of Appeals for the Eleventh Circuit
DecidedApril 26, 2021
Docket20-11624
StatusUnpublished

This text of Estate of Debbie Helmly v. Bethany Hospice and Palliative Care of Coastal Georgia, LLC (Estate of Debbie Helmly v. Bethany Hospice and Palliative Care of Coastal Georgia, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Debbie Helmly v. Bethany Hospice and Palliative Care of Coastal Georgia, LLC, (11th Cir. 2021).

Opinion

USCA11 Case: 20-11624 Date Filed: 04/26/2021 Page: 1 of 18

[DO NOT PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 20-11624 Non-Argument Calendar ________________________

D.C. Docket No. 4:16-cv-00290-WTM-BKE

ESTATE OF DEBBIE HELMLY, et al.,

Plaintiffs-Appellants,

versus

BETHANY HOSPICE AND PALLIATIVE CARE OF COASTAL GEORGIA, LLC, f.k.a. Bethany Hospice of Coastal Georgia, LLC (Bethany Coastal), BETHANY HOSPICE AND PALLIATIVE CARE, LLC, f.k.a. Bethany Hospice, LLC (Bethany Hospice), BETHANY BENEVOLENCE FUND, INC., AVA BEST, et al.,

Defendants-Appellees.

________________________

Appeal from the United States District Court for the Southern District of Georgia ________________________

(April 26, 2021) USCA11 Case: 20-11624 Date Filed: 04/26/2021 Page: 2 of 18

Before MARTIN, NEWSOM, and BRANCH, Circuit Judges.

PER CURIAM:

In this qui tam action, Debbie Helmly and Jolie Johnson (the “Relators”)

appeal the dismissal of their complaint. Relators sued Bethany Hospice and

Palliative Care, LLC (“Bethany Hospice”) on behalf of the United States and the

State of Georgia,1 alleging that Bethany Hospice violated the False Claims Act

(“FCA”), 31 U.S.C. §§ 3729–3733, and the Georgia False Medicaid Claims Act,

O.C.G.A. § 49-4-168.1. In particular, Relators alleged that Bethany Hospice

violated the so-called Anti-Kickback Statute (“AKS”), 42 U.S.C. § 1320a-7b(b),2

by paying physicians remuneration for Medicare and Medicaid patient referrals.

According to Relators, Bethany Hospice submitted false claims when it billed the

government for services provided to illegally-referred patients. Relators further

1 See 31 U.S.C. § 3730(b)(1) (“A person may bring a civil action for a violation of section 3729 for the person and for the United States Government. The action shall be brought in the name of the Government.”); id. § 3732(b) (“The district courts shall have jurisdiction over any action brought under the laws of any State for the recovery of funds paid by a State or local government if the action arises from the same transaction or occurrence as an action brought under section 3730.”). 2 An entity violates the AKS when it:

knowingly and willfully offers or pays any remuneration (including any kickback, bribe, or rebate) directly or indirectly, overtly or covertly, in cash or in kind to any person to induce such person . . . to refer an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under a Federal health care program.

42 U.S.C. § 1320a-7b(b)(2). 2 USCA11 Case: 20-11624 Date Filed: 04/26/2021 Page: 3 of 18

allege that Bethany Hospice falsely certified compliance with the AKS. Under

Rule 9 of the Federal Rules of Civil Procedure, Relators were required to plead

with particularity the submission of an actual false claim to the government.

Because Relators failed to do so, the district court properly dismissed their

complaint. Accordingly, we affirm.

I. Background 3

Bethany Hospice provides for-profit hospice care in Georgia. It operates

care facilities in four cities: Douglas, Thomasville, Waycross, and Valdosta. In

2014, Bethany Hospice opened Bethany Hospice and Palliative Care of Coastal

Georgia, LLC (“Bethany Coastal”). Relators are former employees of Bethany

Coastal. Helmly was employed as the administrator of Bethany Coastal from

December 2014 until July 2015. Johnson was employed as a marketer during the

same period.

Although Bethany Coastal was organized as a separate company from

Bethany Hospice and obtained a different business license number, the two entities

are both owned and operated by Ava Best and Mac Mackey and share personnel,

resources, and management software. According to Relators, Best and Mackey

operated Bethany Coastal “as if it were another facility office of Bethany

3 Relators’ original complaint was filed under seal. After the United States and the State of Georgia declined to intervene, the complaint was unsealed. The following facts are taken from Relators’ third amended complaint (the “operative complaint”). 3 USCA11 Case: 20-11624 Date Filed: 04/26/2021 Page: 4 of 18

Hospice.” For that reason, Relators allege that they were “effectively . . . corporate

insiders of Bethany Hospice.”

Relators allege that, as corporate insiders, they learned that Bethany Hospice

operated an illegal kickback referral scheme in which Bethany Hospice paid

doctors in exchange for referring Medicare beneficiaries 4 to Bethany Hospice.

Relators further allege that, after rendering services to the illegally referred

patients, Bethany Hospice submitted claims to Medicare for reimbursement.

In particular, Helmly alleged that when she and Best were negotiating the

terms of Helmly’s employment as administrator of Bethany Coastal, Best offered

her compensation based on the kickback scheme. During those negotiations, Best

allegedly told Helmly that Best “would follow the same protocol to add

compensation for . . . Helmly that [Best] used to pay referring doctors for their

referrals.” Under that “protocol,” Helmly could make a below-market ownership

investment in Bethany Coastal that would provide “huge returns” based on the

number of referred patients. Helmly further alleged that Best said that she “paid all

the medical directors who owned shares in Bethany Hospice according to this same

formula, and the payments varied depending on the volume of referrals.”

4 Relators allege that the referral scheme involved Medicare and Medicaid beneficiaries. For simplicity, we will refer only to Medicare. 4 USCA11 Case: 20-11624 Date Filed: 04/26/2021 Page: 5 of 18

Relators also alleged that, on other occasions, Best acknowledged to them

that the compensation structure was designed to avoid getting caught for FCA

violations. Best was formerly employed by Odyssey Hospice—a predecessor to

Bethany Hospice. Relators alleged that Odyssey also employed a kickback

compensation scheme, Odyssey’s owner was eventually convicted of Medicare

Fraud, and Odyssey agreed to a $25 million settlement with the U.S. Department

of Justice. According to Relators, Best acknowledged that kickbacks were

improper but, because they were “the most effective way to get referrals,” Best

“tried to have the best of both worlds: paying the kickbacks to referring physicians

but hiding or masking them as compensation to medical directors and part owners

of Bethany Hospice.”

Relators alleged that several doctors purchased ownership interests in

Bethany Hospice and were paid kickbacks for referrals through “a monthly salary,

dividends, and/or monthly bonuses.”5 According to Relators, that compensation

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kirk S. Corsello v. Lincare, Inc.
428 F.3d 1008 (Eleventh Circuit, 2005)
United States v. R&F Properties of Lake County, Inc.
433 F.3d 1349 (Eleventh Circuit, 2005)
United States v. Charles M. McInteer
470 F.3d 1350 (Eleventh Circuit, 2006)
US EX REL. SANCHEZ v. Lymphatx, Inc.
596 F.3d 1300 (Eleventh Circuit, 2010)
United States v. Yosany Sosa
777 F.3d 1279 (Eleventh Circuit, 2015)
Carlos Urquilla-Diaz v. Kaplan University
780 F.3d 1039 (Eleventh Circuit, 2015)
United States E Rel. Phalp v. Lincare Holdings, Inc.
857 F.3d 1148 (Eleventh Circuit, 2017)
Jack Carrel v. AIDS Healthcare Foundation, Inc.
898 F.3d 1267 (Eleventh Circuit, 2018)
United States ex rel. Grant v. United Airlines Inc.
912 F.3d 190 (Fourth Circuit, 2018)
Lattimore v. Bank of America Home Loans
591 F. App'x 693 (Eleventh Circuit, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
Estate of Debbie Helmly v. Bethany Hospice and Palliative Care of Coastal Georgia, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-debbie-helmly-v-bethany-hospice-and-palliative-care-of-coastal-ca11-2021.