Life Care Centers of America Settles False Claims Charges by the Department of Justice
On October 24, 2016, the U.S. Department of Justice (DoJ) announced that Life Care Centers of America and its owner, Forrest Preston, agreed to pay $145 million to settle a lawsuit alleging that it submitted false claims to Medicare for therapy services that were not needed. Life Care Centers of America, based in Tennessee, is one of the nation’s largest nursing home chains and operates about 10 skilled nursing facilities in California. The DoJ reported that the settlement was the largest in its history with a nursing home chain. Life Care joins a growing list of large nursing home chains that DoJ has sued or agreed to settlements with over allegations that fraudulent schemes were used to increase Medicare payments for unnecessary therapy services.