The Des Moines Register reported that Life Care Services and a California nursing-home company called ParkVista that manages nursing homes across the country has agreed to help pay a $3.8 million settlement for alleged over-billing of Medicare, federal officials announced. Life Care Services and ParkVista were involved in an “arrangement” (read as criminal enterprise) under which a therapy company provided “unreasonable and unnecessary” rehabilitation therapy services to nursing-home residents in California and Massachusetts. Officials said the arrangement led to inflated reimbursements from Medicare.
“Patients in skilled nursing facilities and the patients’ families should be able to have confidence that the facilities are not allowing therapy companies to manipulate the amount of therapy being provided based on financial motives,” U.S. Attorney Carmen Ortiz of Massachusetts said in the press release. “Settlements like this one show that, when a facility contracts with an outside rehabilitation therapy provider, the facility has a continuing responsibility to ensure that the provider is not engaged in conduct that causes the submission of false claims to Medicare.”