$38 Million Settlement for Whistleblower Actions Under the False Claims Act Against Operator of Skilled Nursing Facilities

The nursing home real estate trust investment company, Extended Care Real Estate Trust Investments, which operated 146 skilled nursing facilities in 11 states, was found to have over-billed Medicare and Medicaid, provided substandard and essentially worthless nursing care and put in place worthless rehabilitation therapy.

Two private citizens, including the entities’ area director of rehabilitation, brought separate whistleblower lawsuits under the federal False Claims Act on behalf of the United States and themselves. It was alleged that Extended Care bilked Medicare and Medicaid for nursing services that they didn’t provide or failed to meet federal and state standards in 33 of the skilled nursing homes in multiple states. These states included Indiana, Wisconsin, Minnesota, Ohio, Kentucky, Pennsylvania and Washington.

The lawsuit alleged that Extended Care chose not to provide an adequate number of skilled nurses and sufficient catheter care and failed to prevent pressure ulcers or falls to its many residents.

The plaintiffs also maintained that the defendants provided unreasonable and unnecessary rehabilitation services to its Medicare Part A beneficiaries during those patients’ assessment periods.

Before trial this whistleblower’s lawsuit was settled for $38 million.

Lovvorn v. Extended Care Real Estate Trust Investments, No. 2:10-cv-01580 (E.D. Pa., October 10, 2014).

Kreisman Law Offices has been handling nursing home abuse cases, nursing home negligence cases and medical malpractice cases for individuals and families who have been injured or killed by the negligence of a medical provider for more than 38 years, in and around Chicago, Cook County and its surrounding areas including, Park Ridge, Maywood, Worth, Blue Island, Grayslake, Yorkfield, Barrington, Wood Dale, Vernon Hills, Buffalo Grove, Bellwood, Highwood, Chicago (Lincoln Square, Chatham, East Side, Riverside), Calumet City and Calumet Park, Ill.

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