FEBRUARY 11, 2000


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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