Legal Matters

Judge lets kickback case vs. therapy provider go forward

Judge lets kickback case vs. therapy provider go forward By

A whistleblower lawsuit involving a nursing home chain and therapy providers in Missouri can move forward, a federal judge has ruled. The False Claims Act case originated with allegations that a therapy company received more than $10 million in kickbacks as part of a scheme to overbill Medicare and Medicaid.

County not liable for lax workers: judge

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Even if county nursing home workers provide poor care, the county is not liable unless the inadequate care results directly from an official policy or custom, a federal judge has ruled.

Latest whistleblower lawsuit pricetag runs to $2.7 million

Latest whistleblower lawsuit pricetag runs to $2.7 million By

Federal authorities cracked down on another regional long-term care provider recently, reaching a roughly $2.7 million settlement in a lawsuit centering on alleged false therapy billing.

Petition seeks clarity on arbitration

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Nursing home company SSC Odin Operating Co. has asked the U.S. Supreme Court to again weigh in on arbitration agreements.

IL whistleblower suit draws $28M fines

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Two former nurses' complaints about alleged substandard care and inappropriate billing resulted in $28.1 million in penalties being levied against the former owner of an Illinois nursing home. A federal jury assessed the penalties.

High court puts arbitration agreements back into play

High court puts arbitration agreements back into play By

If the U.S. Supreme Court thought it had the final word on the validity of certain nursing home admissions arbitration agreements in 2012, well, it was wrong.

Hospice settles HIPAA case for $50,000

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A stolen laptop has resulted in an Idaho hospice organization paying the Department of Health and Human Services $50,000.

Falsified records mean legal woes for administrator, aide

Falsified records mean legal woes for administrator, aide By

Lying about a wandering resident and foregoing help when lifting a resident were all it took to land a nursing home administrator and a nurse aide in legal trouble.

Ask the legal expert: What to do after being accused of upcoding therapy reimbursement claims?

Ask the legal expert: What to do after being accused of upcoding therapy reimbursement claims? By

We've been accused of upcoding our therapy reimbursement claims. What can we do?

SNF execs ordered to repay $23 million

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A well-known former nursing executive must repay the federal government $13.8 million for fraudulent business practices. Chief U.S. District Court Judge Mary M. Lisi handed down the ruling for the misuse of loans in Anthony Giordano's Rhode Island facilities on Dec. 3.

Life Care Centers accused of fraud, but judge slams feds

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A U.S. District Judge has called federal prosecutors' years-long delay in announcing a Medicare fraud case involving one of the nation's largest nursing home companies "absurd."

Appeals court upholds sexual abuse F-Tag

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A federal appeals court has upheld the government's leveling of Immediate Jeopardy level penalties at a Kentucky nursing home over allegations of resident sexual abuse.

Facility should have used a lift to move resident: court

Facility should have used a lift to move resident: court By

A nursing home resident who suffered a broken leg while being helped out of bed has presented sufficient evidence of negligence to earn another chance to present her case to a jury, the Alabama Supreme Court recently ruled.

Court of appeals sides with CMS in reimbursement case

Court of appeals sides with CMS in reimbursement case By

After struggling over a case involving a rehabilitation claim, a U.S. Court of Appeals has decided in favor of the Centers for Medicare & Medicaid Services' recovery audit contractor program.

Court: Relative not bound by arbitration

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The child of a deceased long-term care resident is not bound to an arbitration agreement because she signed it on behalf of her mother — not herself — an Illinois court ruled in September.

Higher authority may hear religious suit

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A former nursing home activities aide allegedly fired over refusing to pray the rosary with a Catholic resident can proceed with a religious discrimination claim, a federal court ruled in September.

The cost of retaliation against operator? $25 million in NY

The cost of retaliation against operator? $25 million in NY By

A former long-term care provider has achieved a $25 million victory over state authorities. Brook Chambery, the owner of the long-closed Beechwood Restorative Care Center in Rochester, NY, became the benefactor of a $25 million settlement from the state.

Hospice beneficiaries at a draw with HHS

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What hospice services will pay for, and whether beneficiaries receive correct information from the Centers for Medicare & Medicaid Services, converged as issues in court this summer.

Residents sue SNF over staffing, safety

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Five residents of a for-profit California skilled nursing facility sued a Mariner Health Care Inc. facility in June, alleging inadequate staffing and an unsafe environment.

WV negligence lawsuit gets another day in the courtroom

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A verdict against a nursing home of slightly over $90 million is being reconsidered in West Virginia due to a verdict-form error.

Closed facility continues fight with state

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A nursing home closed 13 years ago opened a new chapter in May, when a trial between the state of New York and the home's former owner began.

HealthSouth contests new building of facilities in AL

HealthSouth contests new building of facilities in AL By

HealthSouth Corporation is opposing a deal to build two skilled nursing facilities in Alabama.

IRS aims to collect from ex-LTC executive

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The Internal Revenue Service is attempting to recoup $8 million from a convicted former Rhode Island nursing home executive, signaling a warning to providers that they can be held liable for misdeeds.

Court approves another pact that siphons facility residents

Court approves another pact that siphons facility residents By

In another strike against the traditional nursing home census base, a federal judge in Maine has approved a class-action lawsuit settlement that lets those with long-term disabilities live in their home or the community.

Surveyors not ruled biased for seeking $42,600 in fines

Surveyors not ruled biased for seeking $42,600 in fines By

A Jewish nursing home in Pennsylvania has been turned back in its attempt to have a penalty reviewed that it said resulted from a biased survey process.

Nursing home workers sue over insurance

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Two former nursing home employees may be headed to trial over what they say is their previous employer's failure to pay into a group health plan.

Therapy lawsuit advances in federal court; debate persists

Therapy lawsuit advances in federal court; debate persists By

A former Aegis occupational therapy assistant can move forward with a lawsuit over what she says were fraudulent therapy claims.

AL court rules in favor of health insurer

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Alabama's high court has ordered a nursing home's breach of contract suit against the state's largest health insurer to be dismissed.

Court affirms right of state to recover funds for LTC

Court affirms right of state to recover funds for LTC By

Arizona has the right to recover a community spouse's annuity to pay for an institutionalized spouse's medical costs, a U.S. Court of Appeals has affirmed.

Gay workers can fight for LTC insurance

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Same-sex partners who want to participate in a state long-term care program can move forward with a federal lawsuit, a federal judge has said.

Sun reaches settlement over worker vacation payments

Sun reaches settlement over worker vacation payments By

Sun Healthcare will pay more than $60,000 in a settlement over a failure to pay vacation wages to former employees, the Massachusetts Attorney General said in December.

Feds say hospice firm erred in enrollments

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The federal government has joined a whistleblower complaint that alleges a major hospice company defrauded Medicare.

Florida's highest court rejects use of arbitration agreements

Florida's highest court rejects use of arbitration agreements By

Nursing home arbitration agreements received another blow when the Florida Supreme Court ruled them invalid in two separate cases in November.

Nurses' union wins bargaining agreement

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A federal appeals court agreed that an agreement between union nurses and a hospital should have been honored by new owners.

Use caution evaluating CCRC applicants, legal expert warns

Use caution evaluating CCRC applicants, legal expert warns By

A continuing care retirement community must make sure it is using standard, uniform questions in screening applicants, experts emphasized at the LeadingAge convention.

Agreement declared void in dementia case

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A U.S. Court of Appeals has agreed that an arbitration agreement signed by a nursing home resident with dementia is void.

Lack of oversight may make operators liable, court rules

Lack of oversight may make operators liable, court rules By

A group of Pittsburgh nursing home operators' lack of oversight for their now-defunct nonprofit facility may leave them liable in the eyes of the law, according to the ruling of a federal appeals court.

Life in prison for fraudulent company exec

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A federal judge has imposed a 50-year prison sentence on a Florida executive found guilty of creating a $205 million Medicare fraud scheme that targeted patients with dementia.

Former FL ombudsman files suit against providers, state

Former FL ombudsman files suit against providers, state By

A high-profile ousted Florida ombudsman has filed a lawsuit against the Florida Department of Elder Affairs, the Florida Health Care Association and the Florida Assisted Living Association for alleged whistle-blower retaliation and tortuous interference in a business relationship.

OIG: Firm can't be only supplier to SNF

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A skilled nursing facility should not use a medical supply company as an exclusive supplier in order to get lower prices, according to an advisory opinion from the Office of the Inspector General.

Court upholds decision that limits payments for therapy

Court upholds decision that limits payments for therapy By

A federal court ruled in favor of a fiscal intermediary's decision to exclude the allocation of nursing administration costs to therapy costs in Medicare reimbursements for 30 skilled nursing facilities.

EEOC: Work rule doesn't have a prayer

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The U.S. Equal Employment Opportunity Commission is suing a Florida nursing and rehabilitation facility for firing a certified nursing assistant who did not want to work on her religion's Sabbath day.

Nonprofit chain finds way to make a 'win-win' transition

Nonprofit chain finds way to make a 'win-win' transition By

The year 2009 was a time of transition for Peninsula United Methodist Homes. CEO Allen Johnson was retiring; a partner was needed for a project in Bethany Beach; and the financial future of the company, while not dire, was uncertain.

Court's verdict on spider bite likely to bug many operators

Court's verdict on spider bite likely to bug many operators By

The death of a nursing home resident from a spider bite is a healthcare liability claim and requires an expert report to be filed as such, the Supreme Court of Texas ruled in July.

Ruling may limit arbitration agreements

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Nursing homes cannot use arbitration agreements to combat lawsuits related to residents' care, the Supreme Court of Appeals of West Virginia has ruled.

Major Medicare fraud agreement reached

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A nursing home operator has agreed to pay close to $1 million to settle allegations that it defrauded Medicare, the U.S. Attorney's Office for the Western District of North Carolina has announced.

OIG: No joint pharmacy deal for LTC facility and employee

OIG: No joint pharmacy deal for LTC facility and employee By

A pharmacy employee's joint ownership of a long-term care pharmacy with facility owners would potentially violate anti-kickback statues, according to a federal opinion.

Ask the legal expert: How can I tell if my boss is embezzling?

Ask the legal expert: How can I tell if my boss is embezzling? By

John Durso, Esq., Ungaretti & Harris LLP

House committee approves tort reform proposal — again

House committee approves tort reform proposal — again By

House Republicans recently moved one step closer to passing a key tort reform bill. Following an 18-15 vote in the House Judiciary Committee, the "Help Efficient, Accessible, Low-cost, Timely Healthcare (HEALTH) Act," went to the full House for consideration.

OIG: 9 in 10 SNFs hire convicted criminals

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More than nine out of 10 nursing homes in the United States have at least one convicted criminal on staff, according to a new report from the Department of Health and Human Services Office of Inspector General. The OIG recommends developing procedures to help implement a nationwide criminal background check program.

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