A private company that operates dozens of nursing homes owned by Health & Hospital Corp. of Marion County has agreed to pay more than $5.5 million in a settlement over allegations it submitted false claims to the federal Medicare program.
The settlement was announced Wednesday by the U.S. Attorney’s Office in the Southern District of Indiana. It comes just over five years after a health care executive aided the federal government in filing a whistleblower lawsuit against the company, American Senior Communities LLC, in 2017.
"ASC is pleased to resolve this legacy matter relating to conduct that was alleged to have initiated under its prior management team," Sherri Davies, ASC's Vice President of Marketing, told IndyStar in a statement. She said the company has "implemented a number of measures to enhance its billing procedures to protect against conduct of the kind alleged in the suit."
"ASC denies liability for the allegations in the complaint, which relate to only a narrow set of services ASC provides to residents, and importantly do not suggest any impropriety with respect to quality of care or patient harm."
Whistleblower Joseph Lingenfelter, who was an executive at a hospice care company that contracted with ASC, alleged that ASC charged Medicare for therapy services provided to hospice care patients after those services should have already been covered by the patients' Medicare hospice coverage.
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