Seniors Housing Weekly Update -- Fraud Allegations Going Mainstream

May 14, 2013


May 14, 2013. 60 Seconds with Steve Monroe. With CBS giving attention to the Medicare fraud allegations against Life Care Centers of America, who knows what will happen next?

Fraud Allegations Going Mainstream

You know a story is getting mainstreamed when a major TV network gets involved. Such is the case with the now old story of Life Care Centers of America and the allegations by the Justice Department that the company committed Medicare fraud over the past several years with inappropriate care and coding, mostly with regard to physical therapy. CBS has aired some interviews with a former employee who did not have kind words to say about the company’s policies regarding discharges and therapy protocols, to say the least. We can only imagine if Dan Rather was still an investigative reporter with CBS. While there is always the “disgruntled former employee syndrome” that can be at work, this particular assistant manager and therapist didn’t appear to be a fired employee, and if any of her allegations are true, it is certainly a black eye for the company. While these types of allegations are usually settled with a large multi-million dollar payment, we hope it is a warning shot to any other companies who decry cuts in reimbursement only to “bend” the rules to get more. Come on Forrest, what’s it going to be?



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