By: Christopher Parrella, Esq., CPC, CHC, CPCO
Parrella Health Law, Boston, Ma.
A Health Care Provider Defense and Compliance Firm

In a case of home health fraud, Faith Newton, a Massachusetts home health care operator, has been sentenced to 12 years in federal prison for orchestrating a $100 million health care fraud scheme that exploited MassHealth and Medicaid. The former operator of Arbor Homecare Services LLC was convicted of multiple counts of health care fraud, conspiracy, and money laundering, making this one of the largest home health fraud cases in Massachusetts history.

Newton’s four-year fraud allegedly siphoned over $100 million from MassHealth, a program designed to provide essential care for the most vulnerable populations. It is alleged that Newton and her co-conspirators:

• Billed for home health services that were never provided.
• Paid illegal kickbacks to secure patient referrals.
• Submitted falsified nursing visit notes to justify fraudulent claims.
• Employed untrained and uncertified home health aides while forging documentation to cover it up.
• Pressured doctors to sign off on medically unnecessary care plans.
• Funneled millions into personal bank accounts, with Newton and her husband each writing themselves $2 million checks disguised as “Christmas bonuses.”

In addition to her 12-year prison sentence, she has been ordered to:

Pay $99.7 million in restitution to compensate for stolen funds.
Serve three years of supervised release after prison.
Pay a $250,000 fine for her criminal conduct.

Her co-defendant, Winnie Waruru, has also pleaded guilty and awaits sentencing.

What This Means for Home Health Providers

This case is a wake-up call for home health agencies, physicians, and compliance officers.

Key Takeaways for Home Health Agencies:

• Proper Documentation: Ensure all claims reflect legitimate, medically necessary services.
• Compliance Audits: Regularly audit billing practices and employee training records.
• Avoid Kickbacks: Never engage in referral-based payments or sham employment agreements.
• Certify Your Workforce: Only employ properly trained and licensed home health aides.

Call to Action: Protect Your Home Health Business from Legal Exposure

If you own, operate, or manage a home health agency, compliance should be your top priority. The penalties for fraudulent billing, kickbacks, and documentation failures are severe.

• At Parrella Health Law, we help home health agencies:
• Develop compliance programs
• Conduct internal audits to detect vulnerabilities
• Defend against government investigations and enforcement actions

Don’t wait until regulators or law enforcement come knocking. Contact Parrella Health Law at 857.328.0382 or email Chris at cparrella@parrellahealthlaw.com.

Christopher A. Parrella, Esq., CPC, CHC, CPCO, is a leading healthcare defense and compliance attorney at Parrella Health Law in Boston. With extensive experience in healthcare law, he provides robust legal support in areas including regulatory compliance, audits, healthcare fraud defense, and reimbursement disputes. Christopher emphasizes client-centered advocacy, offering one-on-one consultations for personalized guidance. His proactive approach helps clients navigate complex healthcare regulations, ensuring compliant operations and defending against government investigations, audits, and overpayment demands.