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Jan 20, 2014 by |

$48 Million Settlement in Medicare Fraud Case


A California based nursing home operator has agreed to pay a settlement related to two whistleblower lawsuits.  The settlement is reportedly worth $48 million dollars.  It was alleged that the nursing home operator submitted bills to Medicare for therapy sessions that were unnecessary or never took place.  Ensign Group, Inc., the defendant, operates nursing homes in the western United States.  California whistleblower attorneys say that people who step forward to report fraud save taxpayers millions of dollars every year.

This case began to unfold when two whistleblower lawsuits were filed by former Ensign Group employees.  According to attorneys who worked on the case, Ensign Group regularly billed Medicare for services that were unnecessary, or never took place.  Between 1999 and 2011 it is alleged that six Ensign nursing homes submitted false claims for physical, occupational, and speech therapy services provided to Medicare beneficiaries.   California whistleblower attorneys say that false claims hurt taxpayers.

The two whistleblower lawsuits filed alleged that Ensign Group provided incentives to therapists to increase the amount of therapy sessions provided to patients.  The incentives were put in place to meet pre-planned targets for Medicare revenue and did not take into consideration patient needs.  California whistleblower attorneys say that unnecessary medical procedures cost taxpayers millions of dollars per annum.

The six Ensign Group facilities are:  Memorial healthcare center in Long Beach, Panorama Gardens in Panorama City, Orchard Post Acute care in Whittier, Sea Cliff Healthcare Center in Huntington Beach, Southland in Norwalk, and Victoria Care Center in Ventura.  The monetary compensation has yet to be determined for the whistleblowers in this case.

Evans Law Firm, Inc. handles whistleblower/false claims, consumer fraud class actions, insurance and banking fraud, consumer product liability, elder abuse, and personal injury cases.  If you think that you have witnessed or are the victim of financial fraud by an insurance company, bank or individual then, contact Evans Law Firm, Inc. at (415) 441-8669 for a free and confidential consultation, or email

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