PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Old Man’s Home of Philadelphia d/b/a Saunders House will pay $819,640 to settle claims that the skilled nursing facility provided medically unnecessary rehabilitation therapy to residents to maximize revenue, and without prioritizing clinical needs. Saunders House is located in Wynnewood, PA.

The settlement resolves allegations in a whistleblower complaint filed in federal court in the Eastern District of Pennsylvania under the qui tam provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblower, a physical therapist assistant who provided physical therapy services at Saunders House through his employment with a contracted therapy provider, generally alleged that Saunders House overbilled federal healthcare programs such as Medicare for therapy services. He alleged that Saunders House: (a) overbilled federal healthcare programs such as Medicare for therapy services provided; (b) billed for services not provided; (c) billed for unreasonable, unnecessary, and sometimes harmful therapy; and (d) allowed the therapy provider to manipulate clinical services to maximize billing.

During the relevant time period, Medicare Part A paid for services rendered to a beneficiary in a skilled nursing facility at a daily rate based, in part, on a Resource Utilization Group (RUG) to which the beneficiary is...

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