On June 21, the U.S. Department of Justice (DOJ) announced that Alta Vista Healthcare & Wellness Centre LLC (a skilled nursing facility in Riverside, California) and its management company, Rockport Healthcare Service, have agreed to pay the United States and California $3.825 million to resolve allegations that they violated the False Claims Act (FCA) by the “submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce patient referrals.” According to the government’s accusations, healthcare providers were giving kickbacks in exchange for referrals, which may potentially violate the Anti-Kickback Statute (AKS).
Neyirys Orozco, a former accountant at Alta Vista, reported the alleged fraud to the government and will receive over $581,094 as a qui tam whistleblower under the False Claims Act. Through the act, private citizens have the authority to file lawsuits on behalf of the government when they have knowledge of an individual or company defrauding the government. These individuals, known as qui tam whistleblowers, may receive 15-30% of the government’s recovery as compensation.
According to the allegations, between 2009 and 2019, Alta Vista, under Rockport’s direction and control, provided physicians with lavish gifts, such as expensive dinners, golf trips, limousine rides, massages, luxury items, tablets, and gift cards worth up to $1000 as incentives. Additionally, they allegedly offered Medicare patients various perks, including...
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