Nursing Home Chain Settles Fraud Accusations

Nursing home chain Beverly Enterprises has agreed to pay $20 million to settle claims that it defrauded Medicare and Med-Cal, California's Medicaid program, the Los Angeles Times reports. Under the agreement, Beverly will pay $14.5 million to federal agencies and $5.5 million to California.

The nursing home operator was accused of submitting false reimbursement claims to the state and federal programs though its subsidiary MK Medical, which is now closed. Federal agencies were examining MK reimbursement claims for medical equipment that were filed between 1998 and 2002.

Beverly attorney Russell Hayman said the investigation was spurred by a lack of paperwork, rather than fraud. Hayman said the company "conducted an audit and has now repaid the moneys identified." Hayman added that all of the equipment went to qualified patients.

The company operates 10 nursing homes in California and at one point operated as many as 60 facilities in the state (Yi, Los Angeles Times, 8/19).