Another company got caught gaming the system and has to pay $15.4 million to settle the case. Guardian Elder Care Holdings Inc. operates dozens of nursing homes throughout Pennsylvania, Ohio and West Virginia will pay more than $15.4 million to the government to settle federal whistleblower claims that it provided medically unnecessary rehabilitation therapy to residents to help meet revenue goals. Incredibly no one is going to jail for this criminal enterprise. I guess Trump would pardon them anyway.
The settlement resolves a 2015 whistleblower complaint filed in U.S. Eastern District Court, Philadelphia, that brought the allegations to light that violate provisions of the False Claims Act. About $6.2 million of unnecessary treatment was billed to Medicare and other federal health care programs at 28 facilities operated by Guardian. Two former Guardian employees, Philippa Kraus and Julie White, were the whistleblowers who made the claims and they will share about $2.8 million of the settlement.
“Billing federal health care programs for medically unnecessary rehabilitation services not only depletes these programs’ funds but also exploits our most vulnerable citizens,” Brady said in a statement. Guardian Elder Care pressured its therapists to provide services to meet financial targets and maximize revenue without regard to the clinical need for the care. Unfortunately, this practice is wide spread in the industry base don my years of experience as a nursing home abuse and neglect lawyer.
“Too much rehabilitation therapy can actually harm patients, just like giving them too many pills or too much medicine,” said U.S. Attorney William McSwain in a statement. “And of course it harms taxpayers who foot the bill for unnecessary treatment.”
Guardian is also entering into a corporate integrity agreement with the U.S. Department of Health and Human Services Office of Inspector General as part of the settlement.