Press Release  Boston Home-Health Agency Owner Sentenced to State Prison for Medicaid Fraud and Larceny

Boston — The owner of a Boston-based home health agency has been sentenced to two to three years in state prison for stealing millions of dollars from the state’s Medicaid Program (MassHealth), Attorney General Maura Healey announced today.

On Friday, Suffolk Superior Court Judge Douglas Wilkins sentenced Elena Kurbatzky, age 45, of Boston to two to three years in state prison, with three years of probation to serve upon her release. Kurbatzky must also provide restitution up to $1.8 million and is forbidden from contracting with federal and state health care programs while on probation.

Kurbatzky was convicted after a nine-day jury trial in Suffolk Superior Court on charges of Medicaid False Claims (3 counts), Larceny over $250 by False Pretenses (3 counts), and Medicaid Member Eligibility Fraud (1 count).

“The defendant stole millions from MassHealth and took advantage of patients and taxpayers,” said AG Healey. “We will continue to investigate and take action against those who commit fraud against MassHealth and take health care resources away from people who need them.”

Kurbatzky was indicted in 2017 after an investigation by the AG’s Office found that between February 2015 and October 2016, Kurbatzky’s company, Harmony Home Health Care, LLC (Harmony), billed MassHealth for in-home services allegedly provided to 38 patients, most of which were not provided and/or not authorized. Some of those services were billed while the nurses who were allegedly providing the services were traveling internationally, including Kurbatzky herself.

“In January 2016, MassHealth identified allegations of misconduct and fraudulent billing practices by Harmony Home Health Care, LLC and referred the matter to the Attorney General's Medicaid Fraud Division,” said Dan Tsai, Assistant Secretary for MassHealth. “MassHealth has strengthened its program integrity efforts to ensure that taxpayer dollars are spent appropriately on those who truly need assistance.”

At trial, the AG’s office proved that Harmony fraudulently billed MassHealth for services it did not provide, including billing for nurses that the company claimed were providing services to several patients at different locations at the exact same time.

Harmony also billed MassHealth for services that were not authorized by physicians and, in many cases, forged physician signatures on the patient plans of care in an attempt to show these services were authorized. Kurbatzky also billed for physical, occupational, and speech therapy for the majority of Harmony’s MassHealth patients even though the services were not authorized by the patients’ physicians and Harmony did not employ licensed therapists to perform the alleged services.

Kurbatzky was also a MassHealth member herself, failing to disclose that she was paid $2.6 million by Harmony over two years, which made her ineligible for the program. She then billed MassHealth for services she purportedly received from Harmony that were not authorized by a physician.

Members of the public who are aware of similar practices by other physicians or health care providers should call the Attorney General’s Medicaid Fraud Division at (617) 963-2360 or file a complaint through the Attorney General’s website.

This case was handled by Assistant Attorneys General Jennifer Goldstein and Kevin Lownds and Investigator Christine Baker, Investigations Supervisor Christopher Cecchini, Investigators Megan Corrigan, Patricia Ruiz, and Ruth Zeltzer, all of AG Healey’s Medicaid Fraud Division, with assistance from the Massachusetts State Police assigned to the AG’s Office, Victim Witness Advocate Amber Anderson of the AG’s Victim Services Division, and the Office of the Inspector General. During the fraud investigation and at trial, MassHealth provided invaluable assistance.

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