Another suit involving Medicare fraud on behalf of long-term care facilities was recently settled. The case included sixty nursing homes receiving kickbacks. Four businesses were named as the defendants and all of them agreed to settle and pay the federal government $30 million.
The Legal Matter
The civil lawsuit was first filed in Minnesota. Assistant U.S. Attorney Chad Blumenfield in the state of Minnesota stated that RehabCare Group Inc. and RehabCare Group East Inc. have settled for $25 million. Health Systems Inc. of Sikeston, Missouri and Rehab Systems of Dexter, Mo., according to a recent article in the Sikeston Standard Democrat, have settled for $5 million. The article added that the case was moved to U.S. District Court in St. Louis, Mo.
Rehab Systems, Health Systems, and the sixty other nursing homes have a major owner named James Lincoln of Sikeston, Mo., according to court documents. Furthermore, Lincoln, along with his wife, are also named as president and secretary and board members of the four nursing homes. These findings are based upon court documents that were filed with the Missouri Secretary of State’s office.
Source: $30 Million Medicare Fraud Case Settled / Levin & Perconti