Conduent State Healthcare, LLC, headquartered in New Jersey, has agreed to pay $11,358,767 to resolve False Claims Act allegations arising from Conduent’s fraudulent reporting of call center performance metrics and false claims for payment to the South Carolina Department of Health and Human Services (SCDHHS). Two former employees of Conduent, Richard Kirchner, 71, of Branchburg, N.J., and Brian Devanney, 66, of Lexington, SC, pleaded guilty for their role in fabricating performance metrics and adjusting invoices to SCDHHS. In connection with the settlement, the United States acknowledged that Conduent took significant steps in cooperating with the government’s investigation, entitling it to credit. Since 2016, Conduent has been operating the South Carolina Medicaid Member Contact Center (“call center”), which takes calls from South Carolina Medicaid recipients to resolve these individuals’ questions, requests, or concerns. Conduent’s contract with SCDHHS was performance-based and used a tiered payment structure, with Conduent receiving higher payments as completed call center contacts increased, and receiving penalties if certain metrics were not met.
