Elderwood, a Buffalo based chain of senior care companies, has agreed to pay $950,000 to settle a civil suit that accuses the chain of filing fraudulent claims for Medicare and Medicaid payments over a six-year period, U.S. Attorney Trini E. Ross announced Tuesday.
Elderwood submitted false claims for physical therapy, occupational therapy and speech therapy services between Aug. 1, 2013, and Dec. 31, 2018, that were “medically unnecessary,” according to the Department of Justice. By submitting these claims, Elderwood received larger payments than they were entitled from Medicaid.
The civil settlement stemmed from the whistleblower lawsuit filed in 2015 by a former Elderwood licensed practical nurse, Jean Nolan. She will receive 19% of the settlement payments, which amounts to $180,500 if the full sum is collected. She filed her complaint under the New York False Claims Act, which allows a private party to file accusations on behalf of the U.S. government.