$53.6 Million Settlement reached to resolve False Claims Act Allegations against Genesis Healthcare Inc

Settlement Amount: 

A settlement has been reached to resolve False Claims Act allegations against companies and facilities acquired Genesis Healthcare Inc.

The allegations arose from a lawsuit that claimed Genesis Healthcare Inc had billed for medically unnecessary therapy and hospice services, and “grossly substandard” nursing care.

According to the Justice Department, Genesis Healthcare Inc will pay the federal government $53,639,288.04, including interest, to settle six federal lawsuits and investigations.

 “We are committed to protecting the federal health care programs and the patients who are enrolled in them,” said U.S. Attorney Brian J. Stretch. “We will continue to vigorously pursue companies and individuals who provide care that is grossly deficient or unnecessary.”

Reportedly, this settlement resolves four sets of allegations. First, the settlement resolves allegations involving Skilled Healthcare Group, Inc. (SKG) and its subsidiaries (collectively, the Skilled Companies).  Allegedly, from 2010 through March of 2013, Genesis subsidiary Skilled Healthcare Group Inc. (SKG) and its subsidiaries submitted false claims by (1) billing for hospice services for patients who were not terminally ill and (2) billing inappropriately for certain physician evaluation management services at the SKG Creekside Hospice facility in Las Vegas. In addition, Genesis settled claims that from 2005 through 2013, SKG and its subsidiaries submitted false claims at certain facilities by providing therapy to certain patients longer than medically necessary, and/or billing for more therapy minutes than the patients actually received. This set of claims also included allegations that the SKG subsidiaries assigned patients a higher Resource Utilization Group (RUG) level than necessary. Genesis did not acquire SKG and its related entities until after all of the conduct at issue had occurred.

This settlement also allegedly resolves claims regarding Genesis subsidiaries Sun Healthcare Group Inc., SunDance Rehabilitation Agency Inc., and SunDance Rehabilitation Corp. Specifically, the settlement resolves allegations that from 2008 through September of 2013, those entities billed for outpatient therapy services provided in the State of Georgia that were (1) not medically necessary or (2) unskilled in nature.

Lastly, this settlement allegedly resolves allegations that between 2003 and 2010, Genesis subsidiary, Skilled LLC, submitted claims at certain of its nursing homes for services that were grossly substandard and/or worthless and therefore ineligible for payment. At the heart of the claims of worthless services were allegations that the nursing homes at issue did not provide sufficient nurse staffing to meet residents’ needs.

The whistleblowers, who were former employees of the companies acquired by Genesis, will receive a combined $9.67 million as their share of the recovery.

Based in Kennett Square, Pennsylvania, Genesis owns and operates through its subsidiaries skilled nursing facilities, assisted/senior living facilities, and a rehabilitation therapy business.  

If you have a similar case please fill out the form below or email mail@whistleblowerinstitute.com or call: 619-452–1218


If you or someone you know experienced a similar situation or any other wrongdoing within a corporation you should contact mail@whistleblowerinstitute.com or call: 619-452–1218

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