The DOJ alleged that Longwood pressured therapists to increase the amount of therapy to patients to meet its target revenue from Medicare. The company allegedly set its target revenue without considering the individual therapy needs of patients residing in its skilled nursing facilities.
The Justice Department said Longwood and its skilled nursing facilities violated the False Claims Act.
The settlement partially resolves two lawsuits filed against Longwood Management and its affiliated skilled nursing facilities by whistleblowers. The qui tam provisions of the False Claims Act allow private parties to file charges on behalf of the U.S. government and to share in any settlement proceeds.
The whistleblowers in the case, Judy Boyce, Benjamin Monsod, and Keith Pennetti will collectively get $3,006,000 from the $16.7 million settlement proceeds.
In a statement, U.S. Attorney Nick Hanna for the Central District of California, said, Longwood’s business plan called for substantial revenue from Medicare, and it pressured therapists to provide additional, unnecessary services when targets were not met.”
