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Government Actions
Pennsylvania Nursing Home Chain To Pay $15.5 Million to Settle False Claims Act Allegations of Inappropriate Therapy
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On February 19, 2020, the United States Department of Justice, Western Pennsylvania Division announced the settlement agreement of Guardian Elder Care Holdings, Inc. and its related companies. Guardian operates more than 50 nursing facilities throughout Pennsylvania, as well as in Ohio and West Virginia.
The agreement states the company will pay $15,466,278 to settle claims that the skilled nursing home chain provided medically unnecessary rehabilitation therapy to residents in order to meet revenue goals instead of providing therapy for clinical needs.
It is alleged that Guardian Elder Care pressured its rehabilitation therapists to provide services without regard to clinical need to meet financial goals and maximize revenue. While the investigation was in process, Guardian Elder Care voluntarily disclosed that it had employed two people who were excluded from federal healthcare programs. The settlement holds claim that Guardian Elder Care inappropriately received payment for services provided through these excluded persons during their term of prohibition. The agreement resolves the allegations arising from Guardian Elder Care’s facilities management practices from January 2011 through December 2017.
In addition to the nearly $15.5 million payment, Guardian agreed to enter into a chain-wide Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General to promote compliance and protect vulnerable nursing home residents. The settled civil claims are allegations only and no admission of guilt was provided by Guardian Elder Care.
For more details please see the Press Release
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Reason for Rating - Factors Lowered
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