A $125 Million Settlement Put Skilled Nursing Facilities on Notice
A Qui Tam Lawsuit against the Kindred/RehabCare Nursing home company has just settled for $125 million, according to the law firm that handled the case. The claims, levied under the False Claims Act, were that nursing homes owned by the company systematically defrauded the government by charging for unnecessary and expensive care options, reporting therapy beyond what was being provided, and rounding up the amount of time spent providing care to patients. For large companies, these practices can add up to millions of dollars in reimbursement from Medicare, and are widely practiced in the industry. Our San Francisco qui tam attorneys discuss the law behind the case.
False Claims Act
The False Claims Act allows those with inside knowledge of government fraud, frequently a result of working at or with the company, to bring a qui tam lawsuit, essentially suing on behalf of the government. The money recovered in such a suit is divided between the government agency from which it was stolen, and the relator, the person who brings the suit. On cases involving large sums, or particularly egregious fraud, the government may choose to take over the lawsuit, with the relator still earning their share.
Cases of this nature tend to involve healthcare providers, pharmacology companies, and other medical providers, as Medicare and Medicaid are major sources of money for private sector companies. With billions of dollars being spent by the government on healthcare, it’s important to make sure that companies don’t get comfortable skimming more than their fair share. It can be hard to evaluate medical expenses from the outside, and many people are hesitant to put a price of wellbeing. For that reason, qui tam relators, who have greater insight into the policies, tacit or otherwise, which lead to government fraud.
If you believe that you have knowledge of government fraud being committed by a company you work for or with, please contact the Evans Law Firm for a free consultation regarding your case. You can reach our San Francisco qui tam attorneys at (415) 441-8669, or by email at firstname.lastname@example.org. Our firm handles healthcare, insurance, and annuity fraud as well as nursing home and elder abuse.