Genesis Healthcare Pays $53.6M to End Fraud Allegations

June 16, 2017, 4:25 PM UTC

Genesis Healthcare Inc. is paying $53.6 million to resolve False Claims Act allegations against the company’s hospice and skilled nursing subsidiaries (United States v. Creekside Hospice II, LLC, D. Nev., No. 2:13-cv-167, settlement announced 6/16/17).

The settlement announced June 16 by the Justice Department involved six FCA whistle-blower lawsuits brought by employees at facilities acquired by Kennett Square, Pa.-based Genesis. The whistle-blowers alleged fraudulent Medicare and Medicaid billing occurring before, and in some instances continuing after, acquisition by Genesis.

Notably, the settlement doesn’t include a cooperation clause, which has been increasingly used by the DOJ in FCA settlement ...

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