ColumbiaMagazine.com
Printed from:

Welcome to Columbia Magazine  
 



































 
Attorney General reports $28 million settlement with Extendicare

Daniel Kemp, Deputy Communications Director
Attorney General Jack Conway's Communnications Office

Attorney General Jack Conway today announced that Kentucky has joined with seven other states and the federal government in reaching a $28 million settlement with Extendicare Health Services, Inc. and its subsidiary Progressive Step Corporation (ProStep).



Extendicare is a Delaware corporation that, through its subsidiaries, operates 146 skilled nursing facilities in 11 states. ProStep provides physical, speech and occupational rehabilitation services. This agreement settles allegations that between 2007 and 2013, in 33 of its skilled nursing homes in eight states, Extendicare billed Medicare and Medicaid for substandard skilled nursing services. The agreement also settles allegations that Extendicare failed to provide care to its residents that met federal and state standards of care and regulatory requirements.

The states and the federal government alleged, for example, that Extendicare failed to have a sufficient number of skilled nurses to adequately care for its skilled nursing residents, failed to provide adequate catheter care to some of the residents, and failed to follow the appropriate protocols to prevent pressure ulcers or falls. In addition to Kentucky, the states involved in this settlement include Indiana, Michigan, Minnesota, Ohio, Pennsylvania, Washington and Wisconsin.

"We will not tolerate nursing home operators who put profits ahead of patient care," Attorney General Conway said. "Our seniors rely on the Medicare and Medicaid programs to provide them with quality care, and operators who bill our vital state and federal programs for services so deficient that they are effectively worthless will be pursued for false claims. This settlement illustrates the state and federal government's emphasis on jointly combating health care fraud, and I appreciate the hard work of my Medicaid Fraud Unit and all of the agencies involved in the investigation of this case."

As a result of today's settlement, Extendicare will pay the states and the federal government a total of $28 million in civil damages to compensate Medicaid, Medicare and various federal health care programs for harm suffered as a result of its conduct. The Medicaid program will receive approximately $14.6 million shared among the eight states, and the Medicare program will receive $13.4 million. Kentucky's share of the settlement is $1,246,978, of which the federal government will receive $905,587.

Extendicare and ProStep are also required to enter into a five-year chain-wide Corporate Integrity Agreement with the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services. Under the Corporate Integrity Agreement:
  • Extendicare must have a comprehensive compliance program with systems to address the quality of resident care. Extendicare's compliance program must include, among other things, corporate-level committees to address compliance and quality, including a committee to assess staffing and an internal audit program to assess the quality of care provided to its residents.
  • Extendicare must retain an independent monitor, selected by the OIG, who will regularly visit Extendicare's facilities and report to the OIG.
An independent review organization will perform annual reviews of Extendicare's claims to Medicare. This settlement was the result of a coordinated federal and state effort by the Attorneys General of Kentucky, Indiana, Michigan, Minnesota, Ohio, Pennsylvania, Washington and Wisconsin, the Civil Division of the U.S. Attorney's Office for the Eastern District of Pennsylvania, the U.S. Attorney's Office for the Southern District of Ohio, and the OIG.

A National Association of Medicaid Fraud Control Units team participated in the investigation and conducted the settlement negotiations with Extendicare on behalf of the settling states. In addition to two personnel from Attorney General Conway's office, team members included representatives from the Offices of the Attorneys General for the states of Indiana, Ohio, Oregon, Pennsylvania and Washington.


This story was posted on 2014-10-10 12:20:44
Printable: this page is now automatically formatted for printing.
Have comments or corrections for this story? Use our contact form and let us know.



 

































 
 
Quick Links to Popular Features


Looking for a story or picture?
Try our Photo Archive or our Stories Archive for all the information that's appeared on ColumbiaMagazine.com.

 

Contact us: Columbia Magazine and columbiamagazine.com are published by Linda Waggener and Pen Waggener, PO Box 906, Columbia, KY 42728.
Phone: 270.403.0017


Please use our contact page, or send questions about technical issues with this site to webmaster@columbiamagazine.com. All logos and trademarks used on this site are property of their respective owners. All comments remain the property and responsibility of their posters, all articles and photos remain the property of their creators, and all the rest is copyright 1995-Present by Columbia Magazine. Privacy policy: use of this site requires no sharing of information. Voluntarily shared information may be published and made available to the public on this site and/or stored electronically. Anonymous submissions will be subject to additional verification. Cookies are not required to use our site. However, if you have cookies enabled in your web browser, some of our advertisers may use cookies for interest-based advertising across multiple domains. For more information about third-party advertising, visit the NAI web privacy site.