To settle the allegations of Medicare Fraud put on their 27 skilled nursing facilities in California, Longwood Management Corporation has agreed to pay $16.7 million.
These allegations speak about the injustice done by Longwood Management Corporation by increasing their Medicare billings at its nursing facilities, systematically.
Skilled nursing facilities were repaid Medicare payments to health professionals such as physical or speech therapist that provided therapy or nursing care to patients that qualified.
The highest level of reimbursement was from the agency called Ultra High. This agency is said to have required a minimum of 270 minutes of skilled therapy which is of two types. One of the two therapies was a must to be provided to patients in a span of five days.
The lawsuits against Longwood and its nursing facilities are filed by whistleblowers.
The unnecessary or unreasonable levels of rehabilitation are said to be knowingly submitted by Longwood if believed at the allegations. To meet its target revenues, Longwood is said to have pressurized their therapist to increase the money level that they charged their patients. And because of this allegation Longwood, as said by the Justice Department, violated the False Claims Act that was applicable to its skilled nursing facilities.
Private parties can file charges on behalf of the US government under the que tam provisions of the False Claims Act and share in every settlement proceedings. However, the settlement party resolves two lawsuits against Longwood Management and the skilled nursing facilities.
Whistleblowers, Judy Boyce, Benjamin Monsod, and Keith Pennetta would collectively get $3,006,000 from the total settlement amount.
“Longwood’s business plan called for substantial revenue from Medicare, and it pressured therapists to provide additional, unnecessary services when targets were not met,” said the US Attorney Nick Hanna.
Adding to his statement, he said, “This case demonstrates the power of whistleblowers to shine a light on improper business practices and obtain significant recoveries on behalf of United States taxpayers.” Nick Hanna is the Attorney for the Central District of California.