Search Site
Menu
Department of Justice Takes Active Role in Lawsuit Against Nursing Home Chain

For the past six years, the Ohio-based nursing home chain HCR ManorCare has been embroiled in a whistleblower lawsuit featuring allegations that the company systematically overbilled Medicare and often put its residents through overly rigorous rehabilitation schedules in efforts to increase revenue. Now the U.S. Department of Justice is stepping in, which means an end to the case could be imminent.

The issues began when an occupational therapist in northern Virginia filed a lawsuit accusing HCR ManorCare of pressuring its nursing home administrators to meet unrealistic financial targets through overbilling. According to the lawsuit, the company regularly pushed its patients into the highest tier of rehab services available under Medicare, regardless of their needs. As a result, it was able to increase the total amounts it billed the federal program.

One example cited in the lawsuit was the jump in reimbursement rates over a three-year period. In 2006, HCR ManorCare billed Medicare at the top rate of reimbursement in 39 percent of cases, compared to 80 percent in 2009. The lawsuit also details the case of an 85-year-old man being put through a 100-day therapy routine, even though medical records only called for hospice care and therapists had described him as being “medically fragile.”

Although there is no specific amount investigators gave for how much HCR ManorCare overbilled Medicare, official documents do state that Medicare paid more than $6 billion to the 281 HCR ManorCare facilities between January 2006 and May 2012.

If you are aware of fraud happening within your business or organization, consult the trusted Dallas lawyers at Whistleblower Law for Managers for the advice you need.

Leave a Reply

Your email address will not be published. Required fields are marked *

Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    #600
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
Testimonials
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone."  -V.B.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.

FOLLOW US
Facebook Twitter Linkedin RSS Feed JD Supra