Huge Nursing Home Chain Face Serious Fire by Feds for Fraud

With about 280 nursing homes in 30 states – several in New Jersey — ManorCare is a major contender in the skilled nursing home market in the US. The company is now facing fraud allegations brought on by whistleblowers. The US government recently joined the legal action against ManorCare.

According to the government’s complaint, ManorCare, owned by The Carlyle Group, pressured the administrators of individual skilled nursing facilities to meet goals that were financially unrealistic. In following orders, the homes provided patients (many on Medicare) with expensive, medically unnecessary services.

Of course, the company maintains that it was looking to increase revenues. However, according to government allegations, ManorCare threatened to fire facility administrators who refused to provide the additional treatments that would garner the highest Medicare payouts. Even worse, the nursing homes failed to discharge patients who were ready to leave in an effort to increase Medicare payments.

The company is now facing one legal action (after the government agreed to combine three different lawsuits). The actions were filed under the whistleblower provision of the False Claims Act. Also called the qui tam provision, any whistleblower who provides information about an entity trying to defraud the US Government may receive a share of the recovered money.

If you have information you believe shines light on fraudulent activity, contact an experienced whistleblower lawyer who can review your case and determine how to proceed. Ross Begelman of Begelman & Orlow, P. C. is a skilled and successful qui tam attorney who will listen to your information and will guide you through the process if you chooses to become a whistleblower.

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