United States Attorney John A. Sarcone III has announced that Centers Healthcare will pay $6,063,500 to settle allegations related to the submission of false cost reports to Medicare by 44 Skilled Nursing Facilities (SNFs). These facilities, connected to Centers through common ownership or control, are situated in Rhode Island, Kansas, Missouri, and New York. Among them are 15 facilities located in the Northern District of New York.
“Taxpayer dollars fund nursing homes,” stated United States Attorney John A. Sarcone III. “I expect that nursing homes will truthfully account for how they spend those dollars, which are entrusted to them to care for our elderly and most vulnerable citizens.”
Federal regulations require SNFs to report their allowable charges and expenses to the Centers for Medicare and Medicaid Services (CMS)’s Medicare Administrative Contractors. This includes information on dealings with related organizations—entities related through common ownership or control. When a SNF engages with such an organization, it must disclose the allowable cost of services or supplies involved.
Centers Healthcare admitted that the cost reports from these 44 SNFs included false statements or omissions regarding transactions with related organizations. It was acknowledged that management had reviewed these reports and should have been aware of the inaccuracies.
“When nursing home operators knowingly submit false information in cost reports, they undermine the integrity of federal health care programs and misuse taxpayer dollars,” said Special Agent in Charge Linda T. Hanley of the U.S. Department of Health and Human Services Office of Inspector General (HHS/OIG). “HHS-OIG...will continue working with our DOJ partners to hold bad actors accountable and aggressively pursue those who engage in healthcare fraud.”
The investigation was conducted by a coordinated effort between the United States Attorney’s Office for the Northern District of New York and HHS-OIG’s Office of Investigation (Kansas City Region) along with their Office of Audit Services (Kansas City Region). Assistant United States Attorneys Christopher R. Moran and John D. Hoggan represented the United States.
