SNF to settle Medicaid false claims case for $888,000

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An Andover, NJ-based skilled nursing provider will pay $888,000 to settle allegations that it billed the Medicaid program for substandard nursing services, federal officials announced Wednesday.

Federal and state officials claim Andover Subacute and Rehab Center Services Two Inc. billed the New York Medicaid program from July 2010 to December 2012 for worthless or substandard services that failed to meet federal requirements.

McKnight's request for comment from Andover's general counsel was not returned by production deadline Thursday. The settlement is not an admission of liability on behalf of the provider, according to the agreement.

Andover will pay $395,508 to the federal government, and $492,492 to the state of New York, according to the U.S. Attorney's Office for the District of New Jersey. The provider will also enter into a Corporate Integrity Agreement to “enhance quality assurance, accountability and other aspects of its compliance operations,” authorities said.

The settlement contributes to the more than $1.33 billion in healthcare fraud settlements and fines recovered by the New Jersey attorney's office since it reorganized its healthcare practice in 2010 and launched a stand-alone Health Care and Government Fraud Unit, authorities said.