Erwin Cheng Responds to DOJ Settlement: No Admission of Guilt in Pro Healthcare Civil Resolution

Erwin Cheng, Executive and CEO of Pro Healthcare Servicing, LLC, issues a formal response to the DOJ civil settlement. The statement reaffirms there was no admission of guilt, outlines steps taken to ensure regulatory compliance, and highlights the organization's continued commitment to clinical excellence in both home health and hospice services.

"Pro Healthcare Servicing, LLC, a Joint Commission and ACHC-accredited provider, has long been recognized for its rapid service delivery, innovative care programs, and unwavering dedication to clinical excellence across the home health and hospice sectors. Under the leadership of former CEO Mr. Erwin Cheng, the company built a reputation for responsiveness, integrity, and quality care. This statement aims to clarify the circumstances surrounding the recent civil settlement with the U.S. Department of Justice. Importantly, the settlement does not represent an admission of guilt or wrongdoing by Mr. Cheng or the company.

1. Relief Funds Were Secured in Good Faith

At the time of applying for federal pandemic relief (PPP and EIDL), Pro Healthcare acted in good faith and with no knowledge of any disqualifying conduct. The certifications made reflected the company’s honest understanding of its eligibility and compliance status at that time.

2. Referral Concerns Stemmed from Misunderstood Industry Practices

The civil claims regarding patient referrals were based on historical interactions that, while viewed by some as friendly gestures or professional courtesies, were later interpreted under federal scrutiny as potential kickbacks. These actions were not intended to violate rules and were carried out without full awareness of the complex requirements of the federal Anti-Kickback Statute. There was no intent to violate applicable regulations, and the company has since taken steps to clarify and reinforce compliance expectations throughout the organization.

3. Settlement Covers Claims, Penalties, and Pandemic Relief Funds

The $1 million civil settlement was a strategic business decision made without any admission of guilt or wrongdoing. Its purpose was to resolve all outstanding matters efficiently, allowing the company to focus on its core mission. The settlement amount reflects a comprehensive resolution that includes coverage for all civil claims, potential penalties, and federal relief funds (PPP and EIDL). Given the complexity of healthcare regulations and the scope of the review, the amount was structured to address multiple categories of alleged exposure, rather than solely one issue, and to bring finality without prolonging litigation. This resolution underscores the company’s commitment to transparency, compliance, and continued high standards of care.

4. Preventive Action Has Been Taken

In response, mandatory compliance in-services and ethical training have been conducted for all employees and affiliates. These preventive measures ensure all team members understand and adhere to strict federal and ethical standards moving forward.

5. Continued Commitment to Excellence

Despite the settlement, Pro Healthcare remains committed to its mission of delivering compassionate, high-quality home health and hospice care. Its dual accreditation — by The Joint Commission for its home health program and by ACHC for its hospice services — underscores an ongoing commitment to the highest clinical and operational standards. The organization continues to serve patients and families with professionalism, innovation, and speed, upholding the values that have long defined its reputation in the healthcare community."