A civil healthcare fraud lawsuit against 11 New York-based skilled nursing facilities alleges that they fraudulently inflated Medicare reimbursements by prolonging patient stays without regard to patients’ medical needs. The suit also alleges these facilities billed for excessive rehabilitation therapy that patients did not need. The lawsuit seeks damages and civil penalties under the False Claims Act.
The complaint alleges that, from at least January 2010 through September 2019, the defendants kept patients at the facilities longer than necessary to maximize Medicare bills for patient stays. During those stays, the facilities put patients on higher levels of rehabilitation therapy than necessary based on their clinical needs in order to bill Medicare at the highest rate.