The Department of Justice (DOJ) recently settled a False Claims Act (FCA) complaint against the American Health Foundation (AHF), an affiliated entity, AHF Management Corporation, and three affiliated nursing homes for $3.61 million. The three nursing homes are: Cheltenham Nursing & Rehabilitation Center, The Sanctuary at Wilmington Place and Samaritan Care Center and Villa. The settlement resolved allegations related to “grossly substandard skilled nursing services from 2016 to 2018.”
The Settlement Agreement explicitly stated it was not “an admission of liability by the Defendants.” Frequently, parties to a lawsuit, including a False Claims Act (FCA) claim, will settle to avoid the expense and resources involved with protracted litigation that can drag on for years. In this case, the 140-page FCA complaint was filed on June 14, 2022, and settled three years later, on June 2, 2025.
FCA Overview
The FCA was originally known as the “Lincoln Law” because it dates back to 1863 during the Civil War when Lincoln’s Union government paid for faulty items such as substandard equipment and even sick horses. Essentially, it allowed the federal government to sue a person or entity who fraudulently received money from the government for goods or services that were either defective, not delivered or otherwise fraudulent.
An interesting aspect of the FCA is the whistleblower provisions, which allow a private individual, known as a “relator” to sue on behalf of the government. Should...
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