Nursing Home Chains
Ranked by number of beds as of January 1999
Enterprises Fort Smith, Ark has 62,293 nursing home beds.
Beverly Enterprises has 561 homes in 30 states. Beverly was charged and pleaded
guilty to defrauding Medicare of $460 Million February 3, 2000. June
Gibbs Brown HHS IG collected only $175 million of the $460 million
stolen, because of their lack of ability to pay. Beverly was forced to
divest itself of 10 of itís California Nursing Homes. Much of their
fraud was due to fabricating nursing cost figures, backed by phoney
nurses sign in sheets.(causing a huge shortage of staff) Beverly
has been charged with numerous labor violations over last 5 years.
Beverly is a 'for profit corporation.' Beverly has not filed
Post-Acute Network Atlanta 49,656 nursing home beds. Mariner
Post-Acute Care has 406 homes in 29 states. For profit corporation filed
bankruptcy, 2000 Mariner Post Acute Network Inc. has been
federally charged with Common Law Fraud, and Unjust Enrichment.
"They are facing federal demands for $159 million to cover overpayments, fraud and penalties, the Justice Department said. Negotiations on a
settlement are under way. (Denver Rocky Mountain News 10/22/2000)"
Manor Care Toledo, Ohio 47,138 nursing home beds. Manor
Care formerly Health Care and Retirement Corporation, has 297 homes in
31 states. It is a for profit corporation, and has not filed
AP State & Local Wire, January 4, 2001 Manor Care Nursing home settles with government in False Claims Act proceeding. A federal lawsuit
under the "whistle blower" provisions of the False Claims Act by a former employee of Manor Care at Mercy Fitzgerald. Based on the
complaint and an investigation, the government alleges that Manor Care's claims for services rendered were submitted in deliberate ignorance
or reckless disregard of the truth. The government said Manor Care failed to provide: adequate nursing care to residents with pressure ulcers,
among other accusations."
Healthcare Group Albuquerque 44,941 nursing home beds.
Sun Healthcare Group Inc. Has 365 homes in 26 states. Sun has been
charged with defrauding Medicare of between $40 and $55 Million dollars.
Sun filed for bankruptcy October 1999. Sun is a for profit corporation.
Andrew Turner was the CEO of Sun until: "Turner and the board
concluded Turner's termination "would be appropriate at this
time." Turner was asked to and he did resign. Turners
contract with Sun called for him to get $1 million a year.
However, Medicare reports show Turner received nearly $1.9 million in
salary and bonuses in 1998.
By Ann Imse
Denver Rocky Mountain News Staff Writer
"Connecticut investigators found Sun improperly billed the government for luxury condos, a corporate jet and a $74,000 trip to Italy for staff.
Also, note that
founder/CEO, salary $700,000, scheduled to jump before bankruptcy to
$850,000, then $1 million and stock awards of $5,409,000. After
filing, on the table for approval, a plan to reward the guy (who
caused the financial mess) and asking them to stay with the company
through the bankruptcy reorganization to get the company back on its
feet. Good grief. A total of $7.5 million to be distributed.
Turner to get as CEO $500,000 -- other execs, $125,000 to $350,000 each.
The CFO, chief financial officer and general counsel rewarded $268,000
Also, chief financial officer Robert Woltil, in addition to the $374,000
bonus, would also get pay, equal to a year's salary, if he promised to
stay with the company until the year 2000.
Health Services Owings Mills, Md. 44,302 nursing home beds.
Integrated Health Services has 297 homes in 36 states. IHS has several
Federal Qui Tam (False Claim Lawsuits) pending. Robert Elkins was asked
to resigned 7/29/00. IHS filed bankruptcy in February of 2000. IHS is a
for profit corporation. In January 1999, IHS and the Lyric Subsidiaries
transferred 27 IHS long term care facilities and 5 specialty hospitals
to Monarch Properties LP for approximately $131.2 million in net cash
proceeds plus contingent earn-out payments of up to a maximum of $67.6
million. Elkins owns approximately 30% of Monarch LP and is chairman of
the board of managers of Monarch LP's. Elkins severance package
from IHS: The sum of $1,494,000 and transfer good and clear title
to the tangible personal property. The agreed-upon value of the closing
payment to Elkins is a total of $2,600,000. Elkins received
multimillion-dollar bonuses and perks such as an executive jet - leased
from a company he owned. He also became one of the country's
biggest political contributors. He and IHS gave more than a
half-million dollars to the Democratic Party in the 1996 elections.
That got Elkins invited to three White House Coffees. In bankruptcy
papers filed in 1997, Elkins' salary $752,277, bonus $3.25 million, plus
$14 million to his retirement plan, mandated payoffs through to the year
2005. IHS also owes Medicare and Medicaid $140 million, for
overcharging in the past. It also is being investigated for Medicare
fraud, according to its securities filings.
Louisville, Ky. 38,362 nursing home beds. Vencor Inc. has 291 homes
in 31 states. The Government charged Vencor with defrauding Medicare of
1 Billion dollars. A proposed settlement of Medicare-fraud cases
brought against it by the U.S. Justice Department where June Gibbs Brown
HHS IG collected only130 Million, because of Vencor's lack of
ability to pay. Vencore is a for profit corporation. Vencor filed
bankruptcy September 13, 1999. Vencor agreed to repay the government $90
million on an unrelated claim that it was overpaid by Medicare. Vencor
paid chairman and chief executive officer Edward Kuntz a cash incentive
bonus of $225,000 to stay with the company through it's re-organization
plans. The payment comes on top of $312,500 that Kuntz was paid in
November. The Office of Inspector General (OIG) entered into a
Corporate Integrity Agreement (CIA) with Vencor, Inc. Under the
agreement, which is unprecedented in its focus on ensuring excellence in
the delivery of long-term care, Vencor will adopt a comprehensive
internal quality improvement program at the corporate, regional and
facility levels. The agreement with the OIG resolves in part the ongoing
investigations by the OIG and the Department of Justice involving
allegations of poor quality of care and billing abuses at Vencor. In
1998, Vencor's W. Bruce Lansford CEO of Vencor, his salary $569,469,
cash bonus $137,500, severance $825,000, plus options in 2 millions
shares of stock.
Health Ventures Kennett Square, Pa. 35,016 nursing home beds.
Genesis Health Care Ventures has 271 homes in 16 states. For profit
corporation. Filed bankruptcy 6/23/2000.
Care Services Horsham, Pa. 22,748 nursing home beds. Complete
Care Services has 240 homes in 6 states. For profit corporation. Not in
Centers of America
Cleveland, Tenn. 26,989 nursing home beds. Life
Care of America has 191 homes in 28 states. For profit corporation. Not
Health Milwaukee 21,718 nursing home beds. Extendicare Health
Services 182 homes in 14 states. For profit corporation. Not in
Lutheran Good Samaritan Society Sioux Falls, S.D. 17,356 nursing
home beds. The Evangelical Lutheran Good Samaritan Society has
235 homes in 25 states. Non profit corporation. Not in bankruptcy.
Diversified Health Services Memphis, Tenn. 14,407 nursing home beds.
ServiceMaster Diversified Health Services has 131 homes in 28 states.
For profit corporation. Not in bankruptcy
Healthcare Murfreesboro, Tenn. 13,983 nursing home beds.National Healthcare Corporation Murfreesboro, TN operating 105 nursing homes, faces charges of Medicaid Fraud, Racketeering and Grand
Theft. MICHAEL J. SNIFFEN 12/18/00D U.S. Department of Justice announced that National will pay the government
$27 million to resolve allegations that the company submitted falsely inflated reports to Medicare.
Associated Press Writer
WASHINGTON (AP) via NewsEdge Corporation -
National Healtcare Corp. agreed Friday to pay $27 million to settle allegations it had defrauded the government since 1991 by exaggerating the amount of time its nursing home staff spent caring for Medicare patients, the Justice Department announced.
HealthCare Corp. Atlanta 11,575 nursing home beds. Centennial
HealthCare Corp. has 107 homes in 21 states. For profit corporation. Not
Healthcare Pittsfield, Mass. 8,132 nursing home beds. Lenox
Healthcare has 86 homes in 16 states. For profit corporation. Not in
Guardian North Bay Inc. Found
guilty of criminal neglect and abuse. Forced to sell two of itís
homes. For profit corporation. Not in bankruptcy.
HealthSouth Pays $7.9 Million for Qui Tam: Health South Corporation has made a settlement with the government for $7.9 million for allegedly
overcharging Medicare and TRICARE for supplies purchased from G.G. Enterprises, a related party, and for the costs of an abandoned
Horizon West a California Corporation.
Charged with Medicare fraud. Forced to pay back $4 million dollars. For
profit corporation. Not in bankruptcy.
The New Health Corporation Nursing
home chain faces charges of Medicaid Fraud, Racketeering and Grand
Solomon Health Services
The state attorney general's office is investigating O'Hara Regional Center for possible Medicaid fraud. Officials of
Solomon Health Services, which ran the facility for owners Ari Krausz and David Sebbag, declined to comment, according to spokesman Jeff
Martinez The now-closed Denver nursing home recently agreed to pay $37 million in damages for abusing and neglecting 23 patients, including
six who died. In the suits, O'Hara was accused of failing to provide basic care, much less the expensive rehabilitation it promised. The
investigation could result in charges of mail fraud, wire fraud, health care fraud, false claims, conspiracy to
defraud the United States or other charges.
By Ann Imse
Denver Rocky Mountain News Staff Writer Contact Ann Imse at (303) 892-5438 or imse@RockyMountainNews.com.
Three companies, which run 49 of Colorado's 58 bankrupt homes, are being investigated for defrauding Medicare of hundreds of millions of
dollars. They are Vencor, Sun Healthcare, Mariner Post-Acute Network and Integrated Health Services (IHS) The state's most frail citizens
are relying for care on corporations facing huge debt loads, federal investigations for Medicare fraud and executives negotiating massive
severance packages. Half the 58 bankrupt homes have been cited in the past two years for harming patients, according to state records.
By JEN McCAFFERY, THE ROANOKE TIMES
The parent company of Virginia's second-largest nursing home chain has agreed to pay $1.7 million in restitution for health care fraud,
according to documents made available in federal court Aug. 22, 2001.
The chairman of the board of HCMF Corp., William C. Cranwell of Roanoke, signed a plea agreement Aug. 9 on behalf of the company,
accepting responsibility for the fraud. He also indicated in separate court documents that he would plead guilty to knowing about Medicaid
and Medicare fraud in the company and failing to report it.
Nationally, 54 percent of nursing homes are staffed at dangerously low levels, according to a new federal study. Administrators can't find
people willing to train as certified nurse's aides when they pay only $8 to $9 an hour.
While patients suffer, executives treated themselves to corporate jets, private gyms and, in one case, $40 million to a CEO who was running the
company into the ground.
Even when the Justice Department or regulators can prove fraud or shoddy care, they are reluctant to crack down too hard for fear of closing
too many nursing homes. "We've tried to not force them out of business and not put people out on the street," explained Justice Department
spokesman Charles Miller.
The Justice Department demanded $1.3 billion, including triple damages, from Kentucky-based Vencor Inc., a chain of 303 nursing homes with
five in Colorado. Whistleblower lawsuits accused Vencor of keeping fake financial records, charging for unnecessary medical tests, and
changing diagnoses to get more money.
A recent GAO study found most Medicare fees to nursing homes are fair. It's only the chains' high debt payments that caused the string of
bankruptcies, the GAO concluded. They are in trouble because they "took advantage of Medicare's previous payment policies to finance
inefficient and unnecessary care delivery ..."
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