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.