Largest Failure of Care Settlement Ever: Nursing Home Chain to Pay $38 million in Medicare Fraud Settlement
10th October 2014
One of the largest nursing home chains in the country, Extendicare, has agreed to pay $38 million to resolve allegations that it billed Medicare and Medicaid for substandard care at nearly three dozen facilities around the country, the Justice Department said Friday. A federal investigation into Extendicare prompted by whistleblowers accused the company of failing to provide appropriate care, follow safety protocols or maintain enough skilled nurses. The whistleblower who filed the Flase Claims Act qui tam lawsuit was also awarded $1.8 million in connection with the resolution of the allegations.
In a NY Times article discussing the case, acting assistant attorney general Joyce Branda said that Extendicare’s problems stemmed from its business model, which focused on profit rather than quality of care. But advocates for nursing home residents have criticized the federal government for failing to pursue chains for problems with care.