Allegedly overbilling Medicare led to a big settlement penalty for one Iowa-based company that manages nursing homes. Life Care Services, based in Des Moines, along with California-based ParkVista, denied wrongdoing but agreed to pay a $3.8 million settlement early this month just the same.
The companies were accused of providing “unreasonable and unnecessary” rehab services to residents at facilities on both the east and west coasts and then overbilling Medicare for the services. This all according to federal officials and the Des Moines Register.
“Patients in skilled nursing facilities and the patients’ families should be able to have confidence that the facilities are not allowing therapy companies to manipulate the amount of therapy being provided based on financial motives,” U.S. Attorney Carmen Ortiz said in a press release, according to the Des Moines Register.
Life Care Services manages nursing homes across the country, according to the Register. Federal officials argued that Life Care Services and ParkVista were “involved in an arrangement,” according to the Register.
In the press release, Ortiz warned against the dangers of this type of deception.
“Settlements like this one show that when a facility contracts with an outside rehabilitation therapy provider, that facility has a continuing responsibility to ensure that the provider is not engaged in conduct that causes the submission of false claims to Medicare,” Ortiz said.
The Kosieradzki • Smith Law Firm represents clients in cases involving catastrophic injury caused by 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.