Pittsburgh-area nursing homes fined $15 million for healthcare fraud

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Eric G. Olshan, United States Attorney | U.S. Attorney's Office for the Western District of Pennsylvania

Pittsburgh-area nursing homes fined $15 million for healthcare fraud

Companies operating two nursing homes in the Pittsburgh area have been sentenced to pay over $15 million in restitution following convictions for making false statements related to health care benefits. Acting United States Attorney Troy Rivetti announced that Comprehensive Healthcare Management Services, LLC, operating as Brighton Rehabilitation and Wellness Center, and Mt. Lebanon Operations, LLC, operating as Mount Lebanon Rehabilitation and Wellness Center, were found guilty by a federal jury in December 2023.

United States District Judge Robert J. Colville ordered Brighton to pay $12,629,257.46 in restitution to the U.S. Department of Health & Human Services and serve five years of probation. Mt. Lebanon was ordered to pay $2,721,312.10 in restitution and serve one year of probation.

"Protecting the health, safety, and dignity of the residents of these nursing facilities has been our office’s primary focus," said Acting U.S. Attorney Rivetti. He emphasized that the facilities prioritized profits over patient care by falsifying records regarding staffing levels.

FBI Pittsburgh Special Agent in Charge Kevin Rojek stated that these actions eroded public trust and endangered lives: "These facilities put profits over people."

Maureen Dixon from the Department of Health and Human Services-Office of Inspector General highlighted the importance of compliance with CMS staffing levels: "Healthcare providers are required to provide accurate information."

The trial revealed that both nursing homes falsified staffing data provided to authorities to show compliance with Medicare and Medicaid requirements. This included adding names of individuals not actually working or providing direct patient care to staffing sheets.

Before sentencing, Judge Colville heard testimonies from family members affected by decreased staffing levels at these facilities. These accounts described how reduced staff negatively impacted residents' care.

Judge Colville described the defendants’ actions as "a tragic set of events" affecting patients' care and defrauding taxpayers.

Assistant United States Attorneys Nicole A. Stockey and Jacqueline C. Brown prosecuted the case with Special Assistant United States Attorney Aaron McKendry.

Acting United States Attorney Rivetti praised several agencies for their role in investigating this case leading to successful prosecution.