Feds Charge Churchville Hospice Owner in Medicare Fraud Scheme

An indictment unsealed Wednesday claims a Northampton man used his Philadelphia-based hospice business to defraud and embezzle millions of dollars from the federal government.

Matthew Kolodesh, a.k.a. “Matvei Kolodech,” 49, of Churchville, is charged with multiple counts of healthcare fraud, money laundering and mail fraud after authorities say his business, Home Care Hospice, Inc. (HCH), submitted claims to Medicare in excess of $14 million for patients that were not eligible for or did not receive services. 

According to the indictment, Kolodesh diverted approximately $9.36 million dollars from HCH’s operating account and used the funds for travel, extensive renovations to his Edwards Drive home, college tuition for his son and a luxury automobile.

A statement issued by the FBI said the money included substantial sums of cash siphoned from the HCH operating account through kickbacks from HCH vendors, using a system of phony and inflated invoicing, as well as a cash kickback scam through sham charitable donations made in the name of the hospice.

Kolodesh also owned an operated a similar business, Community Home Healthcare, Inc., in Feasterville.

If convicted of all charges, Kolodesh faces a statutory maximum sentence of 370 years in prison. The government will also seek restitution to Medicare in the amount of $14.3 million and proceeds from the money laundering.

The case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General.

It is being prosecuted by Assistant United States Attorney Suzanne B. Ercole.