The Marin Indpendent Journal reported the investigation into suspicious billing by Brius Healthcare Services. The California State Auditor’s investigation will discover if Brius inflated its prices to profit from Medi-Cal reimbursements. Evidence exists that Brius nursing homes paid inflated prices to some of its related businesses, with some prices exceeding 200 percent of the local market average.
“This one corporation, Brius, takes in approximately $570 million every year in Medi-Cal and Medicare dollars,” legislator McGuire said. “They have two medical supply corporations, a pharmaceutical company and management service businesses.”
The legislators say in that in 2015, Brius paid out more than $67 million to related-party businesses for the purchase of services, goods and supplies, and more than $46 million of that was paid to companies established by Brius’ CEO, Shlomo Rechnitz, to serve as landlords for the centers.
Brius’ owner, Rechnitz, owns the properties Brius’ nursing homes rent, and he charges them above-market rates. Government records show at least 65 Brius nursing homes rent their facilities from a firm controlled by Rechnitz.