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Medi-Minutes
Beverly Agrees to Largest Nursing Home Settlement
in History
The nation’s largest nursing home chain has agreed to
pay a total of $175 million and to relinquish 10 nursing homes for defrauding
Medicare. Beverly Enterprises’ California subsidiary pleaded guilty to
11 charges of submitting false bills to Medicare and will pay a $5 million
criminal fine. Its Arkansas-based parent company will pay a $170 million
civil settlement—$25 million now, with the rest deducted from their Medicare
payments over the next eight years.
The Justice Department claimed that Beverly exaggerated
the number of hours spent caring for Medicare beneficiaries at 10 California
nursing homes as well as others elsewhere. This is the largest settlement
ever in a nursing home case.
Source: The New York Times 2-4-2000
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