February 6, 2018 - Posts

Feds Reach $500,000 Settlement with Nursing Home Over Allegations of Improperly Using Anti-Psychotic Drugs on Medicare Patients

On February 9, 2015 our firm filed a qui tam lawsuit, pursuant to the False Claims Act, on behalf of the nephew of a former patient of Spring Gate Rehabilitation and Healthcare Center. The lawsuit alleged that the defendants defrauded Medicare and Medicaid by providing inadequate, unnecessary, and even non-existent services to their nursing home patients. According to the allegations in the complaint, the whistleblower discovered the nursing home’s scheme through a series of visits to his aunt, where he learned that Spring Gate had prescribed her heavy doses of anti-anxiety and anti-psychotic drugs “despite the fact that there was never a medically accepted indication justifying such heavy-duty medications.”


On February 2, 2018, the United States Attorney’s Office released a statement announcing that Spring Gate would “pay $500,000 to the United States and the State of Tennessee to resolve allegations of false claims to Medicare and Tenncare for services rendered to residents of Spring Gate that were materially substandard, worthless and were provided in violation of certain essential requirements that the United States expects skilled nursing facilities to meet.”  To read the full press release, click here.


In addition to the $500,000 payment, the nursing home also entered into a Corporate Integrity Agreement (CIA)  with Health & Human Services (HHS) that is aimed at protecting Medicare and Medicaid beneficiaries from these practices in the future and protecting the taxpayers from improper claims for so called “worthless services.”


“We are pleased with this result and appreciate the hard work expended by the U.S. Attorney’s Office and the Tennessee Attorney General’s Office to investigate these claims.  This recovery and the CIA send a message to operators of nursing homes that the government will protect both vulnerable nursing homes patients and the taxpayers,”  said our partner Jerry Martin.


To learn more about our Whistleblower & Qui Tam practice click here.  Our firm is located in Nashville, Tennessee but we represent whistleblowers all around the country.

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