False Claims Act Prosecutions of Fraudulent Provision of Nursing Home Rehabilitation Continue to Increase

Fortunately for taxpayers, the False Claims Act allows the government to recover some of its losses when whistleblowers come forward to uncover instances where a provider is knowingly submitting false claims. In the last 18 months, a number of these cases have settled, and more are being investigated and litigated throughout the country.

For example, in January 2016, Kindred/Rehabcare, the largest provider of rehabilitation services at nursing homes paid $125M to resolve a false claims suit. Last June, Hebrew Homes Health Network paid $17M to resolve similar claims. In October 2014, Extendicare paid $38M to resolve state and federal false claims cases. Currently, the federal government is litigating a case against HCR Manorcare alleging it submitted false claims by artificially increasing the amount it billed per patient, and that it provided medically unnecessary rehabilitation services. HCR Manorcare is one of the largest chains of skilled nursing facilities in the country – operating nearly 300 homes nationwide.

CPM has experience representing whistleblowers in these types of cases in order to recover taxpayer dollars.


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