Nursing home manager Grace Healthcare LLC and its affiliate Grace Ancillary Services LLC have agreed to pay $2.7 million to resolve allegations that they submitted false claims to Medicare and TennCare for medically unreasonable and unnecessary rehabilitation therapy. The subject therapy was provided in skilled nursing facilities located in Tennessee and elsewhere.
According to the lawsuit, the defendants pressured therapists to increase the amount of therapy provided to Medicare patients in order to meet revenue targets that were established without regard to patients’ individual therapy needs.
As a reward for initiating this False Claims Act case, the Tennessee whistleblower will receive $405,000.
For more information on this case, click here: http://www.justice.gov/opa/pr/2013/March/13-civ-290.html