Suit claims AIDS foundation scammed Medicare for $20M

Apr 8, 2015 12:47 PM by News Staff

FORT LAUDERDALE, Fla. (AP) - A lawsuit filed in South Florida federal court alleges one of the nation's largest suppliers of HIV and AIDS medical care bilked federal Medicare and Medicaid programs in a $20 million scam that spanned 12 states.

Three former managers of the AIDS Healthcare Foundation filed the suit last week. It alleges the company paid employees and patients kickbacks for patient referrals.

Employees were paid $100 bonuses for referring patients with positive test results to its clinics and pharmacies. The lawsuit alleges kickbacks started in 2010 at the company's California headquarters and spread to programs in Georgia, Louisiana and Florida.

It alleges referrals were key to the company's business model and touted at its 2013 leadership summit.

A message left at the company's Fort Lauderdale office was not immediately returned.

Copyright 2015 The Associated Press. All rights reserved.


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