Feds conclude investigation of payments to Gentiva

The U.S. Department of Health and Human Services' Office of the Inspector General has concluded its investigation of alleged overpayments to Melville-based Gentiva Health Services without finding evidence of wrongdoing.

The office also declined to join a lawsuit brought by an ex-employee over

While not a pronouncement of innocence, the company received a letter Nov. 1 saying the investigation had been concluded "without any penalty or sanction to Gentiva," according to Michael Johns, vice president of communications.

The investigation dated back to 1999, when Gentiva was still part of Olsten Corp., and stemmed from a whistle-blower complaint filed in California. The original plaintiff in the action has still not served the company with a complaint.

Johns would not comment on the specific areas or instances where overpayments by the government were alleged.

Gentiva is one of the country's largest providers of home health care and specialized pharmaceutical services, with more than 300 locations and $1.5 billion in revenues.

Andrew May, an analyst with Jefferies & Co., said that in such cases, once the government concludes its investigation without a finding of wrongdoing, the original plaintiff often discontinues his suit as well.

The company, he said, was now "nicely profitable," with $80 million in cash on hand, though its margins were still "below average" for the sector.