Attorney General announces that Colorado will receive $5.7 million following settlement with Maxim Healthcare Services

DENVER — Colorado Attorney General John Suthers announced today that his office will receive
$5.7 million as part of a $160 million multistate settlement with Maryland-based Maxim Healthcare Services, Inc., an in-home healthcare services provider. The settlement, joined by 41 states, settles allegations that the healthcare company billed Medicaid for services not performed.

Colorado’s share of the settlement will be returned to the state’s General Fund through the Colorado Department of Healthcare Policy and Financing. Colorado will receive half of the funds from Maxim Healthcare Services in a lump-sum payment. The remaining half will be paid in quarterly increments over the next eight years.

The nationwide settlement resulted from a lawsuit brought by a whistleblower who complained of receiving statements of services rendered that were not performed. State and federal investigators confirmed the improper billing by sampling patients and discovering widespread discrepancies.

The Colorado Attorney General’s Medicaid Fraud Control Unit facilitated Colorado’s share of the settlements. Colorado’s Medicaid program provides more than $4 billion worth of medical care for nearly 700,000 recipients each year.

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