Genesis Healthcare agrees to pay $52.7 million settlement

The nation’s largest long-term care company has agreed to settle four separate U.S. Department of Justice investigations to the tune of $52.7 million.

The Pennsylvania-based company said the settlement would resolve allegations of under-staffing at several of the provider’s long-term care facilities from 2005-2013, and improper billing for hospice services in Nevada by Skilled Healthcare, a company that Genesis acquired early last year through a merger.

“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,” Genesis said in a statement released to the public.

The post-acute care provider says it expects to pay back the federal government over a period of 5 years, one the agreement has been finalized and approved. Genesis already set aside $39 million for a potential settlement, and has indicated that they will record an additional 13.6 million contingency loss in the second quarter of 2016.

Genesis Healthcare subsidiaries provide rehabilitation services in 34 states. The company has more than 500 skilled nursing home and senior living communities across the nation, make it one the largest post-acute providers.

The provider is not the first to reach a settlement with the DOJ. Kindred Healthcare agreed to an even larger $125 million settlement in January of this year. There are a number of DOJ investigations into billing practices at care facilities underway nationwide.

If you suspect that someone you love is living in a care facility that is understaffed, and they have suffered injury because of this, contact The Carlson Law Firm as soon as possible. We have a team of skilled professionals who are well-versed in the complex field of nursing home litigation who are ready to assist. Call us today for your no-obligation consultation. We care, we can help.


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