The Department of Justice (DOJ) has filed a motion to drop a
False Claims Act lawsuit it had joined against HCR ManorCare in 2015. The
whistleblower lawsuit had asserted that the provider submitted false claims for
levels of rehabilitation services that weren't medically necessary in order to
boost its reimbursements. Last month the judge struck an expert witness’
testimony and ordered DOJ to pay HCR ManorCare’s legal fees.
Four San Diego-area nursing centers owned by Brius
Management Co. have
agreed to pay up to $6.9 million to resolve civil allegations that their
employees paid kickbacks to hospital discharge planners for patient referrals
and submitted fraudulent bills to the government. In the Deferred Prosecution
Agreements, the four nursing centers admitted that their employees conspired to
pay kickbacks without the knowledge of the management company.
The nursing
centers have entered into a Corporate Integrity Agreement with the Office of
Inspector General (OIG) as part of the settlement to resolve the whistleblower case.
The hospitals also agreed to pay up to $4.9 million if certain operational
contingencies are met.
The DOJ has
announced that Hyperion Foundation and its former President, AltaCare
Corporation and its Chief Executive Officer, Long Term Care Services Inc., and
Sentry Healthcare Acquirors Inc. have agreed to pay $1.25 million to resolve
allegations brought by a whistleblower. The government alleged that from
October 2005 to May 2012, Hyperion made claims to Medicare and Medicaid for
providing effectively worthless services to residents at the Oxford Health and
Rehabilitation nursing center, which was managed by AltaCare.
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