Extendicare Health Services, an operator of 146 skilled nursing facilities in 11 states, recently paid $38 million to settle a case alleging it failed to provide proper care in its nursing homes. Two employees of Extendicare blew the whistle on their company’s practices which resulted in the lawsuit and subsequent settlement.
The whistleblowers, acting under the United States False Claims Act, alleged that Extendicare improperly billed Medicare and Medicaid, provided substandard nursing care, and implemented medically unnecessary rehabilitation therapy. More specifically, it was alleged that Extendicare billed Medicare and Medicaid for nursing services that did not meet state and federal standards. Additionally, it was alleged that Extendicare facilities failed to provide an adequate number of nurses, did not give sufficient catheter care and failed to adequately prevent falls and pressure ulcers for its patient population.
Citation: Lovvorn v. Extendicare Real Estate Trust Inv., No. 2:10-CV-01580