Genesis Healthcare Faces FCA Action After Claims of Unnecessary Treatments

A group of therapists has filed a False Claims Act lawsuit against Genesis Healthcare LLC, claiming the organization was regularly overcharging the government for therapies and putting its patients through a number of unnecessary treatments to make more money.

The plaintiffs in the suit are four occupational therapists and a speech therapist, all of whom allege the company fraudulently billed Medicaid, Medicare and Tricare for millions of dollars worth of claim money through a major scheme at nursing homes. The company allegedly accomplished this by manipulating data, inflating the hourly rates of therapists and providing therapy to patients who should have actually been placed in hospice care.

The lawsuits against Genesis stem from actions dating back to 2011 and are just the latest claims actions filed against a rehab therapy provider for reimbursement fraud, about which many government officials have expressed their concerns in the last 10 years.

Claims of unethical billing, treatment practices

The plaintiffs say Genesis mischaracterized just how serious the patients’ ailments were as an excuse to increase their therapists’ rates. The complainants say patients who were considered “terminal” or “end of life” received treatments for which they were ineligible — and actually suffered needlessly because of the actions of Genesis. Some patients were treated in groups, but were marked for billing as individuals to inflate prices. Finally, Genesis allegedly created a number of incentives for nursing facilities to bill for higher-paying illnesses and ailments than what patients actually had.

It’s important for businesses and organizations to respond to whistleblower claims quickly. For further legal guidance, contact an experienced Dallas attorney at Whistleblower Law for Managers today.