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Extendicare Announces $38M Settlement With U.S. Government

Extendicare Health Services, Inc. does not expect the lump-sum $38 million settlement it agreed to pay the government to affect them, according to a press release detailing the agreement.

The settlement finalizes investigations and claims brought up by the Department of Justice and Office of the Inspector General of the U.S. Department of Health and Human Services that date all the way back to 2010.

Extendicare is now subject to a period of compliance during which it will be monitored by the Office of the Inspector General for five years, according to the press release. The Office of the Inspector General will monitor Extendicare for compliance in implementing and maintaining heath care program requirements in skilled nursing home facilities.

But “Extendicare does not expect the settlement to have a material adverse effect on the Company’s business or long-term consolidated financial position,” according to the press release, despite the obvious funding lost that could have gone to improving services.

Extendicare operates 440 long-term care facilities across North America, including eight nursing homes in Minnesota. Extendicare Health Services Inc. is the corporation’s “wholly owned U.S. subsidiary,” according to the press release.

Click here to read the entire press release.

The Kosieradzki • Smith Law Firm represents clients in cases involving catastrophic injury caused by nursing homes and other care facilities, including Extendicare nursing homes, 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.