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Extendicare’s Financials Improve After Reaching $42.2 Million Settlement with U.S. Government

MarketWatch reported yesterday afternoon that Extendicare’s review for the second quarter of 2014 was $531.6 million, which represents a $13.4 million increase over the same period last year.

MarketWatch reports that Extendicare Health Services, Inc. reached a tentative settlement with the U.S. Department of Justice (DOJ), the Office of the Inspector General (OIG) of the U.S. Department of Health and Human Services and multiple states regarding the government’s investigations and claims that have been pending since 2010. Extendicare, of course, denies that it did anything illegal or engaged in any wrongdoing.

Pursuant to the terms of the tentative settlement, Extendicare will make a lump-sum payment of $38 million in the the third or fourth quarter of 2014. Extendicare’s results for the second quarter of 2014 reflect a provision of $42.2 million (US$39 million) related to the tentative settlement obligation and other related costs.

The tentative settlement also provides for Extendicare to enter into a five-year corporate integrity agreement with the government, which will require Extendicare to maintain a compliance program at all of its U.S. skilled nursing centers and related rehabilitation operations designed to ensure compliance with federal and state health care program requirements.

MarketWatch reports that Extendicare does not expect the settlement to have a material adverse effect on the company’s business or long-term financial position.

CLICK HERE to learn more about Extendicare and the performance of its nursing home facilities in Minnesota.

The Kosieradzki • Smith Law Firm represents clients in cases involving catastrophic injury caused by Extendicare’s nursing homes and other care facilities that fail to provide proper care. If you believe your loved one has been harmed due neglect or abuse in a nursing home, take action and contact the Kosieradzki • Smith Law Firm online or call us toll-free at (877) 552-2873 to set up a no-cost, no-obligation consultation.