Nursing Home Agrees to Pay 2.7 Million After Accused of Medicare Fraud

The U.S. Department of Justice has announced that Grace Healthcare LLC, a large nursing home management corporation, has agreed to pay $2.7 million to settle claims that they violated the False Claims Act by submitting Medicare claims for unnecessary rehabilitation services.

The settlement resolves claims that the corporation submitted false claims in 10 different nursing home facilities from 2007 through June of 2011. The facility allegedly billed higher amounts of physical, occupational, and speech therapy in order to meet revenue goals, not based on actual patient needs. 

The lawsuit arose after a former employee of the company filed a whistleblower case under the False Claims Act. The act provides private citizens with a way to bring suit on behalf of the United States and share in any recovery. For more, read the story.


Robert W. Carter, Jr. is a Virginia attorney whose law practice is dedicated to protecting the rights of the victims of nursing home and assisted living neglect and abuse in Richmond, Roanoke, Norfolk, Lynchburg, Danville, Charlottesville, and across Virginia.

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