Settlements in four DOJ investigations to cost Genesis $52.7 million
EDITOR'S NOTE: The headline of this story was changed from its original form to more accurately reflect the story content. A line also was added to clarify ownership status of the facilities in question.
Genesis Healthcare will pay $52.7 million under an agreement to settle four separate Department of Justice investigations, the nation's largest long-term care company said.
The settlement will address allegations over inadequate staffing numbers at several of Genesis' facilities and improperly billing the government for hospice services, according to a statement released by the company. Alleged Medicare rule violations for physical therapy at two Genesis-owned subsidiaries also will be resolved as a result of the payment. All of the alleged improprieties occurred before Genesis acquired the facilities.
“The company has agreed to the settlement in principle in order to resolve the allegations underlying these successor matters and to avoid the uncertainty and expense of litigation,” the company's statement said.
Genesis said it had already set aside $39.1 million for the settlement, but it expects to record an additional loss contingency expense of $13.6 million in the second quarter of 2016 as a result of the lawsuits. Company officials added that they plan to pay the full amount over a period of five years.
Genesis made $5.62 billion in revenue last year and reported a net loss of $426 million, according to the company's earning reports.