Ohio-based nursing home operator American Health Foundation Inc. lost its bid to dismiss a False Claims Act lawsuit, after a federal court in Pennsylvania rejected the argument that the claims at issue weren’t “false” under the worthless services doctrine.
The allegations against AHF “rise to the level of gross-negligence necessary to deem their services worthless,” the US District Court for the Eastern District of Pennsylvania said.
The lawsuit involves allegedly substandard care provided at three AHF operated nursing homes, including significant lapses in medical care and resident neglect due to gross understaffing.
At one of the facilities, staff frequently left ...
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