Dive Brief:
- The Justice Department is intervening in a lawsuit against HCR ManorCare, which operates around 281 skilled nursing facilities in 30 states.
- The long-standing lawsuit alleges that HCR ManorCare has been systematically overbilling for Medicare patients and subjecting seniors to unnecessary and at times harmful care.
- The DOJ intervention brings together allegations in three complaints filed by former employees of ManorCare subsidiary Heartland Employment Services. The initial accusations were made in 2009 by an occupational therapist in Virginia.
Dive Insight:
According to the lawsuit, ManorCare consistently pressured its executives to meet financial targets by billing for unnecessary care. It also claims that patients who should have been on hospice care were instead being put through rigorous rehab routines.
The company has denied the allegations, claiming that the lawsuit stems from provision of care that exceeded government expectations.